Correlation Between Tung Thih and Chander Electronics
Can any of the company-specific risk be diversified away by investing in both Tung Thih and Chander Electronics 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 Chander Electronics 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 Chander Electronics Corp, you can compare the effects of market volatilities on Tung Thih and Chander Electronics 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 Chander Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tung Thih and Chander Electronics.
Diversification Opportunities for Tung Thih and Chander Electronics
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Tung and Chander is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Tung Thih Electronic and Chander Electronics Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chander Electronics Corp 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 Chander Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chander Electronics Corp has no effect on the direction of Tung Thih i.e., Tung Thih and Chander Electronics go up and down completely randomly.
Pair Corralation between Tung Thih and Chander Electronics
Assuming the 90 days trading horizon Tung Thih Electronic is expected to generate 23.33 times more return on investment than Chander Electronics. However, Tung Thih is 23.33 times more volatile than Chander Electronics Corp. It trades about 0.06 of its potential returns per unit of risk. Chander Electronics Corp is currently generating about -0.02 per unit of risk. If you would invest 13,256 in Tung Thih Electronic on August 29, 2024 and sell it today you would lose (2,856) from holding Tung Thih Electronic or give up 21.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tung Thih Electronic vs. Chander Electronics Corp
Performance |
| Timeline |
| Tung Thih Electronic |
| Chander Electronics Corp |
Tung Thih and Chander Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tung Thih and Chander Electronics
The main advantage of trading using opposite Tung Thih and Chander Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tung Thih position performs unexpectedly, Chander Electronics 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 Chander Electronics will offset losses from the drop in Chander Electronics' long position.| Tung Thih vs. Hota Industrial Mfg | Tung Thih vs. BizLink Holding | Tung Thih vs. Cub Elecparts | Tung Thih vs. Hu Lane Associate |
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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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