Correlation Between Cayman Tung and Phoenix Silicon
Can any of the company-specific risk be diversified away by investing in both Cayman Tung and Phoenix Silicon 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 Cayman Tung and Phoenix Silicon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cayman Tung Ling and Phoenix Silicon International, you can compare the effects of market volatilities on Cayman Tung and Phoenix Silicon 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 Cayman Tung with a short position of Phoenix Silicon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cayman Tung and Phoenix Silicon.
Diversification Opportunities for Cayman Tung and Phoenix Silicon
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cayman and Phoenix is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Cayman Tung Ling and Phoenix Silicon International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Phoenix Silicon Inte and Cayman Tung 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 Cayman Tung Ling are associated (or correlated) with Phoenix Silicon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Phoenix Silicon Inte has no effect on the direction of Cayman Tung i.e., Cayman Tung and Phoenix Silicon go up and down completely randomly.
Pair Corralation between Cayman Tung and Phoenix Silicon
Assuming the 90 days trading horizon Cayman Tung is expected to generate 2.99 times less return on investment than Phoenix Silicon. In addition to that, Cayman Tung is 1.09 times more volatile than Phoenix Silicon International. It trades about 0.03 of its total potential returns per unit of risk. Phoenix Silicon International is currently generating about 0.1 per unit of volatility. If you would invest 5,805 in Phoenix Silicon International on August 28, 2024 and sell it today you would earn a total of 8,445 from holding Phoenix Silicon International or generate 145.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.71% |
| Values | Daily Returns |
Cayman Tung Ling vs. Phoenix Silicon International
Performance |
| Timeline |
| Cayman Tung Ling |
| Phoenix Silicon Inte |
Cayman Tung and Phoenix Silicon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cayman Tung and Phoenix Silicon
The main advantage of trading using opposite Cayman Tung and Phoenix Silicon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cayman Tung position performs unexpectedly, Phoenix Silicon 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 Phoenix Silicon will offset losses from the drop in Phoenix Silicon's long position.| Cayman Tung vs. Dynamic Medical Technologies | Cayman Tung vs. Louisa Professional Coffee | Cayman Tung vs. PlayNitride | Cayman Tung vs. Emerging Display Technologies |
| Phoenix Silicon vs. Scientech Corp | Phoenix Silicon vs. Sitronix Technology Corp | Phoenix Silicon vs. Kinsus Interconnect Technology | Phoenix Silicon vs. Andes Technology 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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