Correlation Between Emerging Display and StShine Optical
Can any of the company-specific risk be diversified away by investing in both Emerging Display and StShine Optical 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 Emerging Display and StShine Optical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Emerging Display Technologies and StShine Optical Co, you can compare the effects of market volatilities on Emerging Display and StShine Optical 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 Emerging Display with a short position of StShine Optical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Emerging Display and StShine Optical.
Diversification Opportunities for Emerging Display and StShine Optical
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Emerging and StShine is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Emerging Display Technologies and StShine Optical Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on StShine Optical and Emerging Display 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 Emerging Display Technologies are associated (or correlated) with StShine Optical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of StShine Optical has no effect on the direction of Emerging Display i.e., Emerging Display and StShine Optical go up and down completely randomly.
Pair Corralation between Emerging Display and StShine Optical
Assuming the 90 days trading horizon Emerging Display Technologies is expected to generate 1.59 times more return on investment than StShine Optical. However, Emerging Display is 1.59 times more volatile than StShine Optical Co. It trades about 0.03 of its potential returns per unit of risk. StShine Optical Co is currently generating about 0.01 per unit of risk. If you would invest 2,135 in Emerging Display Technologies on September 3, 2024 and sell it today you would earn a total of 555.00 from holding Emerging Display Technologies or generate 26.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Emerging Display Technologies vs. StShine Optical Co
Performance |
| Timeline |
| Emerging Display Tec |
| StShine Optical |
Emerging Display and StShine Optical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Emerging Display and StShine Optical
The main advantage of trading using opposite Emerging Display and StShine Optical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Emerging Display position performs unexpectedly, StShine Optical 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 StShine Optical will offset losses from the drop in StShine Optical's long position.| Emerging Display vs. Taiwan Semiconductor Manufacturing | Emerging Display vs. Yang Ming Marine | Emerging Display vs. ASE Industrial Holding | Emerging Display vs. AU Optronics |
| StShine Optical vs. GeneReach Biotechnology | StShine Optical vs. Sunmax Biotechnology Co | StShine Optical vs. Ligitek Electronics Co | StShine Optical vs. C Media Electronics |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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