Correlation Between Kerry TJ and Taiwan Navigation
Can any of the company-specific risk be diversified away by investing in both Kerry TJ and Taiwan Navigation 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 Kerry TJ and Taiwan Navigation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kerry TJ Logistics and Taiwan Navigation Co, you can compare the effects of market volatilities on Kerry TJ and Taiwan Navigation 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 Kerry TJ with a short position of Taiwan Navigation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kerry TJ and Taiwan Navigation.
Diversification Opportunities for Kerry TJ and Taiwan Navigation
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Kerry and Taiwan is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Kerry TJ Logistics and Taiwan Navigation Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Taiwan Navigation and Kerry TJ 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 Kerry TJ Logistics are associated (or correlated) with Taiwan Navigation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Taiwan Navigation has no effect on the direction of Kerry TJ i.e., Kerry TJ and Taiwan Navigation go up and down completely randomly.
Pair Corralation between Kerry TJ and Taiwan Navigation
Assuming the 90 days trading horizon Kerry TJ is expected to generate 3.77 times less return on investment than Taiwan Navigation. But when comparing it to its historical volatility, Kerry TJ Logistics is 1.82 times less risky than Taiwan Navigation. It trades about 0.01 of its potential returns per unit of risk. Taiwan Navigation Co is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 2,635 in Taiwan Navigation Co on September 2, 2024 and sell it today you would earn a total of 470.00 from holding Taiwan Navigation Co or generate 17.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kerry TJ Logistics vs. Taiwan Navigation Co
Performance |
| Timeline |
| Kerry TJ Logistics |
| Taiwan Navigation |
Kerry TJ and Taiwan Navigation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kerry TJ and Taiwan Navigation
The main advantage of trading using opposite Kerry TJ and Taiwan Navigation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kerry TJ position performs unexpectedly, Taiwan Navigation 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 Taiwan Navigation will offset losses from the drop in Taiwan Navigation's long position.| Kerry TJ vs. BES Engineering Co | Kerry TJ vs. Continental Holdings Corp | Kerry TJ vs. Kee Tai Properties | Kerry TJ vs. Hung Sheng Construction |
| Taiwan Navigation vs. BES Engineering Co | Taiwan Navigation vs. Continental Holdings Corp | Taiwan Navigation vs. Kee Tai Properties | Taiwan Navigation vs. Hung Sheng Construction |
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
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| 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 | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Global Correlations Find global opportunities by holding instruments from different markets |