Correlation Between Excelsior Medical and Top Union
Can any of the company-specific risk be diversified away by investing in both Excelsior Medical and Top Union 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 Excelsior Medical and Top Union into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Excelsior Medical Co and Top Union Electronics, you can compare the effects of market volatilities on Excelsior Medical and Top Union 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 Excelsior Medical with a short position of Top Union. Check out your portfolio center. Please also check ongoing floating volatility patterns of Excelsior Medical and Top Union.
Diversification Opportunities for Excelsior Medical and Top Union
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Excelsior and Top is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Excelsior Medical Co and Top Union Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Top Union Electronics and Excelsior Medical 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 Excelsior Medical Co are associated (or correlated) with Top Union. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Top Union Electronics has no effect on the direction of Excelsior Medical i.e., Excelsior Medical and Top Union go up and down completely randomly.
Pair Corralation between Excelsior Medical and Top Union
Assuming the 90 days trading horizon Excelsior Medical is expected to generate 3.82 times less return on investment than Top Union. But when comparing it to its historical volatility, Excelsior Medical Co is 1.25 times less risky than Top Union. It trades about 0.19 of its potential returns per unit of risk. Top Union Electronics is currently generating about 0.56 of returns per unit of risk over similar time horizon. If you would invest 3,200 in Top Union Electronics on December 16, 2024 and sell it today you would earn a total of 310.00 from holding Top Union Electronics or generate 9.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Excelsior Medical Co vs. Top Union Electronics
Performance |
| Timeline |
| Excelsior Medical |
| Top Union Electronics |
Excelsior Medical and Top Union Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Excelsior Medical and Top Union
The main advantage of trading using opposite Excelsior Medical and Top Union positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Excelsior Medical position performs unexpectedly, Top Union 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 Top Union will offset losses from the drop in Top Union's long position.| Excelsior Medical vs. Wellell | ||
| Excelsior Medical vs. YungShin Global Holding | ||
| Excelsior Medical vs. Abnova Taiwan Corp | ||
| Excelsior Medical vs. Phytohealth Corp |
| Top Union vs. Excelsior Medical Co | ||
| Top Union vs. Song Shang Electronics | ||
| Top Union vs. Ma Kuang Healthcare | ||
| Top Union vs. Pacific Hospital Supply |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |