Correlation Between Tung Thih and Tait Marketing
Can any of the company-specific risk be diversified away by investing in both Tung Thih and Tait Marketing 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 Tait Marketing 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 Tait Marketing Distribution, you can compare the effects of market volatilities on Tung Thih and Tait Marketing 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 Tait Marketing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tung Thih and Tait Marketing.
Diversification Opportunities for Tung Thih and Tait Marketing
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Tung and Tait is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Tung Thih Electronic and Tait Marketing Distribution in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tait Marketing Distr 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 Tait Marketing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tait Marketing Distr has no effect on the direction of Tung Thih i.e., Tung Thih and Tait Marketing go up and down completely randomly.
Pair Corralation between Tung Thih and Tait Marketing
Assuming the 90 days trading horizon Tung Thih Electronic is expected to under-perform the Tait Marketing. In addition to that, Tung Thih is 2.84 times more volatile than Tait Marketing Distribution. It trades about -0.26 of its total potential returns per unit of risk. Tait Marketing Distribution is currently generating about -0.13 per unit of volatility. If you would invest 4,060 in Tait Marketing Distribution on October 21, 2024 and sell it today you would lose (70.00) from holding Tait Marketing Distribution or give up 1.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tung Thih Electronic vs. Tait Marketing Distribution
Performance |
| Timeline |
| Tung Thih Electronic |
| Tait Marketing Distr |
Tung Thih and Tait Marketing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tung Thih and Tait Marketing
The main advantage of trading using opposite Tung Thih and Tait Marketing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tung Thih position performs unexpectedly, Tait Marketing 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 Tait Marketing will offset losses from the drop in Tait Marketing'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 |
| Tait Marketing vs. Elitegroup Computer Systems | Tait Marketing vs. Asustek Computer | Tait Marketing vs. Tai Tung Communication | Tait Marketing vs. An Shin Food Services |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Stocks Directory Find actively traded stocks across global markets | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |