Correlation Between Tung Thih and Alcor Micro
Can any of the company-specific risk be diversified away by investing in both Tung Thih and Alcor Micro 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 Alcor Micro 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 Alcor Micro, you can compare the effects of market volatilities on Tung Thih and Alcor Micro 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 Alcor Micro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tung Thih and Alcor Micro.
Diversification Opportunities for Tung Thih and Alcor Micro
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Tung and Alcor is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Tung Thih Electronic and Alcor Micro in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alcor Micro 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 Alcor Micro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alcor Micro has no effect on the direction of Tung Thih i.e., Tung Thih and Alcor Micro go up and down completely randomly.
Pair Corralation between Tung Thih and Alcor Micro
Assuming the 90 days trading horizon Tung Thih Electronic is expected to generate 1.75 times more return on investment than Alcor Micro. However, Tung Thih is 1.75 times more volatile than Alcor Micro. It trades about 0.01 of its potential returns per unit of risk. Alcor Micro is currently generating about -0.24 per unit of risk. If you would invest 9,970 in Tung Thih Electronic on August 31, 2024 and sell it today you would lose (120.00) from holding Tung Thih Electronic or give up 1.2% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 95.65% |
Values | Daily Returns |
Tung Thih Electronic vs. Alcor Micro
Performance |
Timeline |
Tung Thih Electronic |
Alcor Micro |
Tung Thih and Alcor Micro Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Tung Thih and Alcor Micro
The main advantage of trading using opposite Tung Thih and Alcor Micro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tung Thih position performs unexpectedly, Alcor Micro 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 Alcor Micro will offset losses from the drop in Alcor Micro'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 |
Alcor Micro vs. Quanta Computer | Alcor Micro vs. Wiwynn Corp | Alcor Micro vs. Getac Technology Corp | Alcor Micro vs. InnoDisk |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
Money Managers Screen money managers from public funds and ETFs managed around the world | |
Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |