Correlation Between President Securities and Grand Fortune
Can any of the company-specific risk be diversified away by investing in both President Securities and Grand Fortune 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 President Securities and Grand Fortune into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between President Securities Corp and Grand Fortune Securities, you can compare the effects of market volatilities on President Securities and Grand Fortune 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 President Securities with a short position of Grand Fortune. Check out your portfolio center. Please also check ongoing floating volatility patterns of President Securities and Grand Fortune.
Diversification Opportunities for President Securities and Grand Fortune
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between President and Grand is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding President Securities Corp and Grand Fortune Securities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grand Fortune Securities and President Securities 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 President Securities Corp are associated (or correlated) with Grand Fortune. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grand Fortune Securities has no effect on the direction of President Securities i.e., President Securities and Grand Fortune go up and down completely randomly.
Pair Corralation between President Securities and Grand Fortune
Assuming the 90 days trading horizon President Securities is expected to generate 1.18 times less return on investment than Grand Fortune. In addition to that, President Securities is 2.05 times more volatile than Grand Fortune Securities. It trades about 0.01 of its total potential returns per unit of risk. Grand Fortune Securities is currently generating about 0.03 per unit of volatility. If you would invest 1,220 in Grand Fortune Securities on October 20, 2024 and sell it today you would earn a total of 5.00 from holding Grand Fortune Securities or generate 0.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
President Securities Corp vs. Grand Fortune Securities
Performance |
| Timeline |
| President Securities Corp |
| Grand Fortune Securities |
President Securities and Grand Fortune Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with President Securities and Grand Fortune
The main advantage of trading using opposite President Securities and Grand Fortune positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if President Securities position performs unexpectedly, Grand Fortune 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 Grand Fortune will offset losses from the drop in Grand Fortune's long position.| President Securities vs. CTBC Financial Holding | President Securities vs. First Financial Holding | President Securities vs. Mega Financial Holding | President Securities vs. ESUN Financial Holding |
| Grand Fortune vs. Yeou Yih Steel | Grand Fortune vs. Forest Water Environmental | Grand Fortune vs. Century Iron And | Grand Fortune vs. Wei Chih Steel |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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