Correlation Between Tung Thih and I Jang
Can any of the company-specific risk be diversified away by investing in both Tung Thih and I Jang 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 I Jang 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 I Jang Industrial, you can compare the effects of market volatilities on Tung Thih and I Jang 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 I Jang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tung Thih and I Jang.
Diversification Opportunities for Tung Thih and I Jang
Very good diversification
The 3 months correlation between Tung and 8342 is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Tung Thih Electronic and I Jang Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on I Jang Industrial 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 I Jang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of I Jang Industrial has no effect on the direction of Tung Thih i.e., Tung Thih and I Jang go up and down completely randomly.
Pair Corralation between Tung Thih and I Jang
Assuming the 90 days trading horizon Tung Thih Electronic is expected to generate 2.98 times more return on investment than I Jang. However, Tung Thih is 2.98 times more volatile than I Jang Industrial. It trades about 0.15 of its potential returns per unit of risk. I Jang Industrial is currently generating about -0.05 per unit of risk. If you would invest 9,010 in Tung Thih Electronic on September 3, 2024 and sell it today you would earn a total of 990.00 from holding Tung Thih Electronic or generate 10.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tung Thih Electronic vs. I Jang Industrial
Performance |
| Timeline |
| Tung Thih Electronic |
| I Jang Industrial |
Tung Thih and I Jang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tung Thih and I Jang
The main advantage of trading using opposite Tung Thih and I Jang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tung Thih position performs unexpectedly, I Jang 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 I Jang will offset losses from the drop in I Jang's long position.| Tung Thih vs. E Lead Electronic Co | Tung Thih vs. Jentech Precision Industrial | Tung Thih vs. Turvo International Co | Tung Thih vs. Ruentex Development Co |
| I Jang vs. AVerMedia Technologies | I Jang vs. Min Aik Technology | I Jang vs. Uniform Industrial Corp | I Jang 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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