Correlation Between Chang Hwa and Run Long
Can any of the company-specific risk be diversified away by investing in both Chang Hwa and Run Long 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 Chang Hwa and Run Long into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chang Hwa Commercial and Run Long Construction, you can compare the effects of market volatilities on Chang Hwa and Run Long 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 Chang Hwa with a short position of Run Long. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chang Hwa and Run Long.
Diversification Opportunities for Chang Hwa and Run Long
Excellent diversification
The 3 months correlation between Chang and Run is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Chang Hwa Commercial and Run Long Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Run Long Construction and Chang Hwa 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 Chang Hwa Commercial are associated (or correlated) with Run Long. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Run Long Construction has no effect on the direction of Chang Hwa i.e., Chang Hwa and Run Long go up and down completely randomly.
Pair Corralation between Chang Hwa and Run Long
Assuming the 90 days trading horizon Chang Hwa Commercial is expected to under-perform the Run Long. But the stock apears to be less risky and, when comparing its historical volatility, Chang Hwa Commercial is 4.37 times less risky than Run Long. The stock trades about -0.1 of its potential returns per unit of risk. The Run Long Construction is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 3,655 in Run Long Construction on November 28, 2024 and sell it today you would earn a total of 160.00 from holding Run Long Construction or generate 4.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chang Hwa Commercial vs. Run Long Construction
Performance |
| Timeline |
| Chang Hwa Commercial |
| Run Long Construction |
Chang Hwa and Run Long Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chang Hwa and Run Long
The main advantage of trading using opposite Chang Hwa and Run Long positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chang Hwa position performs unexpectedly, Run Long 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 Run Long will offset losses from the drop in Run Long's long position.| Chang Hwa vs. Hua Nan Financial | Chang Hwa vs. First Financial Holding | Chang Hwa vs. Sinopac Financial Holdings | Chang Hwa vs. Taishin Financial Holding |
| Run Long vs. Chang Type Industrial | Run Long vs. Anderson Industrial Corp | Run Long vs. Klingon Aerospace | Run Long vs. Basso Industry Corp |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |