Correlation Between Chinese Gamer and Voltronic Power
Can any of the company-specific risk be diversified away by investing in both Chinese Gamer and Voltronic Power 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 Voltronic Power 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 Voltronic Power Technology, you can compare the effects of market volatilities on Chinese Gamer and Voltronic Power 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 Voltronic Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chinese Gamer and Voltronic Power.
Diversification Opportunities for Chinese Gamer and Voltronic Power
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Chinese and Voltronic is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Chinese Gamer International and Voltronic Power Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voltronic Power Tech 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 Voltronic Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voltronic Power Tech has no effect on the direction of Chinese Gamer i.e., Chinese Gamer and Voltronic Power go up and down completely randomly.
Pair Corralation between Chinese Gamer and Voltronic Power
Assuming the 90 days trading horizon Chinese Gamer is expected to generate 3.68 times less return on investment than Voltronic Power. But when comparing it to its historical volatility, Chinese Gamer International is 1.33 times less risky than Voltronic Power. It trades about 0.01 of its potential returns per unit of risk. Voltronic Power Technology is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 181,000 in Voltronic Power Technology on August 24, 2024 and sell it today you would earn a total of 14,000 from holding Voltronic Power Technology or generate 7.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Chinese Gamer International vs. Voltronic Power Technology
Performance |
| Timeline |
| Chinese Gamer Intern |
| Voltronic Power Tech |
Chinese Gamer and Voltronic Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chinese Gamer and Voltronic Power
The main advantage of trading using opposite Chinese Gamer and Voltronic Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chinese Gamer position performs unexpectedly, Voltronic Power 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 Voltronic Power will offset losses from the drop in Voltronic Power'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 |
| Voltronic Power vs. Silergy Corp | Voltronic Power vs. Airtac International Group | Voltronic Power vs. Advantech Co | Voltronic Power vs. Sinbon Electronics Co |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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