Correlation Between Chinese Gamer and Integrated Service
Can any of the company-specific risk be diversified away by investing in both Chinese Gamer and Integrated Service 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 Chinese Gamer and Integrated Service into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chinese Gamer International and Integrated Service Technology, you can compare the effects of market volatilities on Chinese Gamer and Integrated Service 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 Chinese Gamer with a short position of Integrated Service. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chinese Gamer and Integrated Service.
Diversification Opportunities for Chinese Gamer and Integrated Service
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Chinese and Integrated is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Chinese Gamer International and Integrated Service Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Integrated Service and Chinese Gamer 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 Chinese Gamer International are associated (or correlated) with Integrated Service. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Integrated Service has no effect on the direction of Chinese Gamer i.e., Chinese Gamer and Integrated Service go up and down completely randomly.
Pair Corralation between Chinese Gamer and Integrated Service
Assuming the 90 days trading horizon Chinese Gamer International is expected to generate 0.37 times more return on investment than Integrated Service. However, Chinese Gamer International is 2.7 times less risky than Integrated Service. It trades about -0.09 of its potential returns per unit of risk. Integrated Service Technology is currently generating about -0.31 per unit of risk. If you would invest 4,625 in Chinese Gamer International on August 28, 2024 and sell it today you would lose (105.00) from holding Chinese Gamer International or give up 2.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chinese Gamer International vs. Integrated Service Technology
Performance |
| Timeline |
| Chinese Gamer Intern |
| Integrated Service |
Chinese Gamer and Integrated Service Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chinese Gamer and Integrated Service
The main advantage of trading using opposite Chinese Gamer and Integrated Service positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chinese Gamer position performs unexpectedly, Integrated Service 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 Integrated Service will offset losses from the drop in Integrated Service's long position.| Chinese Gamer vs. YuantaP shares Taiwan Electronics | Chinese Gamer vs. YuantaP shares Taiwan Mid Cap | Chinese Gamer vs. Fubon MSCI Taiwan | Chinese Gamer vs. YuantaP shares Taiwan Top |
| Integrated Service vs. Global Unichip Corp | Integrated Service vs. Asmedia Technology | Integrated Service vs. Unimicron Technology Corp | Integrated Service vs. Novatek Microelectronics 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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