Correlation Between E Lead and Chicony Power
Can any of the company-specific risk be diversified away by investing in both E Lead and Chicony Power at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining E Lead and Chicony Power into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between E Lead Electronic Co and Chicony Power Technology, you can compare the effects of market volatilities on E Lead and Chicony Power and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in E Lead with a short position of Chicony Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of E Lead and Chicony Power.
Diversification Opportunities for E Lead and Chicony Power
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between 2497 and Chicony is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding E Lead Electronic Co and Chicony Power Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chicony Power Technology and E Lead is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on E Lead Electronic Co are associated (or correlated) with Chicony Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chicony Power Technology has no effect on the direction of E Lead i.e., E Lead and Chicony Power go up and down completely randomly.
Pair Corralation between E Lead and Chicony Power
Assuming the 90 days trading horizon E Lead Electronic Co is expected to generate 1.41 times more return on investment than Chicony Power. However, E Lead is 1.41 times more volatile than Chicony Power Technology. It trades about 0.03 of its potential returns per unit of risk. Chicony Power Technology is currently generating about -0.01 per unit of risk. If you would invest 5,510 in E Lead Electronic Co on October 25, 2024 and sell it today you would earn a total of 320.00 from holding E Lead Electronic Co or generate 5.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
E Lead Electronic Co vs. Chicony Power Technology
Performance |
| Timeline |
| E Lead Electronic |
| Chicony Power Technology |
E Lead and Chicony Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with E Lead and Chicony Power
The main advantage of trading using opposite E Lead and Chicony Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if E Lead position performs unexpectedly, Chicony Power can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Chicony Power will offset losses from the drop in Chicony Power's long position.| E Lead vs. Weltrend Semiconductor | E Lead vs. Catcher Technology Co | E Lead vs. Cub Elecparts | E Lead vs. Elan Microelectronics Corp |
| Chicony Power vs. Li Kang Biomedical | Chicony Power vs. Air Asia Co | Chicony Power vs. MediaTek | Chicony Power vs. International CSRC Investment |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |