Correlation Between Ta Liang and Hiwin Technologies
Can any of the company-specific risk be diversified away by investing in both Ta Liang and Hiwin Technologies 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 Ta Liang and Hiwin Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ta Liang Technology and Hiwin Technologies Corp, you can compare the effects of market volatilities on Ta Liang and Hiwin Technologies 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 Ta Liang with a short position of Hiwin Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ta Liang and Hiwin Technologies.
Diversification Opportunities for Ta Liang and Hiwin Technologies
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between 3167 and Hiwin is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Ta Liang Technology and Hiwin Technologies Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hiwin Technologies Corp and Ta Liang 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 Ta Liang Technology are associated (or correlated) with Hiwin Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hiwin Technologies Corp has no effect on the direction of Ta Liang i.e., Ta Liang and Hiwin Technologies go up and down completely randomly.
Pair Corralation between Ta Liang and Hiwin Technologies
Assuming the 90 days trading horizon Ta Liang Technology is expected to generate 1.99 times more return on investment than Hiwin Technologies. However, Ta Liang is 1.99 times more volatile than Hiwin Technologies Corp. It trades about 0.11 of its potential returns per unit of risk. Hiwin Technologies Corp is currently generating about 0.01 per unit of risk. If you would invest 6,350 in Ta Liang Technology on September 3, 2024 and sell it today you would earn a total of 5,200 from holding Ta Liang Technology or generate 81.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ta Liang Technology vs. Hiwin Technologies Corp
Performance |
| Timeline |
| Ta Liang Technology |
| Hiwin Technologies Corp |
Ta Liang and Hiwin Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ta Liang and Hiwin Technologies
The main advantage of trading using opposite Ta Liang and Hiwin Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ta Liang position performs unexpectedly, Hiwin Technologies 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 Hiwin Technologies will offset losses from the drop in Hiwin Technologies' long position.| Ta Liang vs. Highlight Tech | Ta Liang vs. WiseChip Semiconductor | Ta Liang vs. Novatek Microelectronics Corp | Ta Liang vs. Leader Electronics |
| Hiwin Technologies vs. Universal Microelectronics Co | Hiwin Technologies vs. AVerMedia Technologies | Hiwin Technologies vs. Symtek Automation Asia | Hiwin Technologies vs. WiseChip Semiconductor |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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