Correlation Between Tung Thih and Fitipower Integrated
Can any of the company-specific risk be diversified away by investing in both Tung Thih and Fitipower Integrated 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 Tung Thih and Fitipower Integrated into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tung Thih Electronic and Fitipower Integrated Technology, you can compare the effects of market volatilities on Tung Thih and Fitipower Integrated 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 Tung Thih with a short position of Fitipower Integrated. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tung Thih and Fitipower Integrated.
Diversification Opportunities for Tung Thih and Fitipower Integrated
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Tung and Fitipower is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Tung Thih Electronic and Fitipower Integrated Technolog in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fitipower Integrated and Tung Thih 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 Tung Thih Electronic are associated (or correlated) with Fitipower Integrated. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fitipower Integrated has no effect on the direction of Tung Thih i.e., Tung Thih and Fitipower Integrated go up and down completely randomly.
Pair Corralation between Tung Thih and Fitipower Integrated
Assuming the 90 days trading horizon Tung Thih Electronic is expected to generate 26.05 times more return on investment than Fitipower Integrated. However, Tung Thih is 26.05 times more volatile than Fitipower Integrated Technology. It trades about 0.06 of its potential returns per unit of risk. Fitipower Integrated Technology is currently generating about -0.01 per unit of risk. If you would invest 12,989 in Tung Thih Electronic on September 2, 2024 and sell it today you would lose (2,989) from holding Tung Thih Electronic or give up 23.01% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tung Thih Electronic vs. Fitipower Integrated Technolog
Performance |
| Timeline |
| Tung Thih Electronic |
| Fitipower Integrated |
Tung Thih and Fitipower Integrated Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tung Thih and Fitipower Integrated
The main advantage of trading using opposite Tung Thih and Fitipower Integrated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tung Thih position performs unexpectedly, Fitipower Integrated 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 Fitipower Integrated will offset losses from the drop in Fitipower Integrated's long position.| Tung Thih vs. Hota Industrial Mfg | Tung Thih vs. BizLink Holding | Tung Thih vs. Cub Elecparts | Tung Thih vs. Hu Lane Associate |
| Fitipower Integrated vs. Taiwan Semiconductor Manufacturing | Fitipower Integrated vs. MediaTek | Fitipower Integrated vs. United Microelectronics | Fitipower Integrated 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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