Correlation Between Taishin Financial and Acer E
Can any of the company-specific risk be diversified away by investing in both Taishin Financial and Acer E 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 Taishin Financial and Acer E into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Taishin Financial Holding and Acer E Enabling Service, you can compare the effects of market volatilities on Taishin Financial and Acer E 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 Taishin Financial with a short position of Acer E. Check out your portfolio center. Please also check ongoing floating volatility patterns of Taishin Financial and Acer E.
Diversification Opportunities for Taishin Financial and Acer E
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Taishin and Acer is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Taishin Financial Holding and Acer E Enabling Service in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acer E Enabling and Taishin Financial 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 Taishin Financial Holding are associated (or correlated) with Acer E. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acer E Enabling has no effect on the direction of Taishin Financial i.e., Taishin Financial and Acer E go up and down completely randomly.
Pair Corralation between Taishin Financial and Acer E
Assuming the 90 days trading horizon Taishin Financial Holding is expected to generate 0.12 times more return on investment than Acer E. However, Taishin Financial Holding is 8.25 times less risky than Acer E. It trades about 0.0 of its potential returns per unit of risk. Acer E Enabling Service is currently generating about -0.22 per unit of risk. If you would invest 5,140 in Taishin Financial Holding on October 28, 2024 and sell it today you would earn a total of 0.00 from holding Taishin Financial Holding or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Taishin Financial Holding vs. Acer E Enabling Service
Performance |
| Timeline |
| Taishin Financial Holding |
| Acer E Enabling |
Taishin Financial and Acer E Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Taishin Financial and Acer E
The main advantage of trading using opposite Taishin Financial and Acer E positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Taishin Financial position performs unexpectedly, Acer E 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 Acer E will offset losses from the drop in Acer E's long position.| Taishin Financial vs. Ligitek Electronics Co | Taishin Financial vs. Wei Chih Steel | Taishin Financial vs. Quintain Steel Co | Taishin Financial vs. LandMark Optoelectronics |
| Acer E vs. Thermaltake Technology Co | Acer E vs. China Metal Products | Acer E vs. Century Iron And | Acer E vs. Chief Telecom |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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