Correlation Between Da Cin and Kuo Toong
Can any of the company-specific risk be diversified away by investing in both Da Cin and Kuo Toong 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 Da Cin and Kuo Toong into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Da Cin Construction Co and Kuo Toong International, you can compare the effects of market volatilities on Da Cin and Kuo Toong 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 Da Cin with a short position of Kuo Toong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Da Cin and Kuo Toong.
Diversification Opportunities for Da Cin and Kuo Toong
Average diversification
The 3 months correlation between 2535 and Kuo is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Da Cin Construction Co and Kuo Toong International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kuo Toong International and Da Cin 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 Da Cin Construction Co are associated (or correlated) with Kuo Toong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kuo Toong International has no effect on the direction of Da Cin i.e., Da Cin and Kuo Toong go up and down completely randomly.
Pair Corralation between Da Cin and Kuo Toong
Assuming the 90 days trading horizon Da Cin Construction Co is expected to generate 0.8 times more return on investment than Kuo Toong. However, Da Cin Construction Co is 1.26 times less risky than Kuo Toong. It trades about 0.29 of its potential returns per unit of risk. Kuo Toong International is currently generating about -0.07 per unit of risk. If you would invest 4,980 in Da Cin Construction Co on September 12, 2024 and sell it today you would earn a total of 440.00 from holding Da Cin Construction Co or generate 8.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Da Cin Construction Co vs. Kuo Toong International
Performance |
| Timeline |
| Da Cin Construction |
| Kuo Toong International |
Da Cin and Kuo Toong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Da Cin and Kuo Toong
The main advantage of trading using opposite Da Cin and Kuo Toong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Da Cin position performs unexpectedly, Kuo Toong 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 Kuo Toong will offset losses from the drop in Kuo Toong's long position.| Da Cin vs. Yang Ming Marine | Da Cin vs. Wan Hai Lines | Da Cin vs. U Ming Marine Transport | Da Cin vs. Taiwan Navigation Co |
| Kuo Toong vs. Nankang Rubber Tire | Kuo Toong vs. Rich Development Co | Kuo Toong vs. Kung Sing Engineering | Kuo Toong vs. Advanced Lithium Electrochemistry |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |