Correlation Between Bioteque and Chi Sheng
Can any of the company-specific risk be diversified away by investing in both Bioteque and Chi Sheng 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 Bioteque and Chi Sheng into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bioteque and Chi Sheng Chemical, you can compare the effects of market volatilities on Bioteque and Chi Sheng 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 Bioteque with a short position of Chi Sheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bioteque and Chi Sheng.
Diversification Opportunities for Bioteque and Chi Sheng
Very good diversification
The 3 months correlation between Bioteque and Chi is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Bioteque and Chi Sheng Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chi Sheng Chemical and Bioteque 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 Bioteque are associated (or correlated) with Chi Sheng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chi Sheng Chemical has no effect on the direction of Bioteque i.e., Bioteque and Chi Sheng go up and down completely randomly.
Pair Corralation between Bioteque and Chi Sheng
Assuming the 90 days trading horizon Bioteque is expected to under-perform the Chi Sheng. But the stock apears to be less risky and, when comparing its historical volatility, Bioteque is 1.05 times less risky than Chi Sheng. The stock trades about -0.02 of its potential returns per unit of risk. The Chi Sheng Chemical is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 2,805 in Chi Sheng Chemical on October 29, 2024 and sell it today you would earn a total of 20.00 from holding Chi Sheng Chemical or generate 0.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bioteque vs. Chi Sheng Chemical
Performance |
| Timeline |
| Bioteque |
| Chi Sheng Chemical |
Bioteque and Chi Sheng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bioteque and Chi Sheng
The main advantage of trading using opposite Bioteque and Chi Sheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bioteque position performs unexpectedly, Chi Sheng 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 Chi Sheng will offset losses from the drop in Chi Sheng's long position.| Bioteque vs. StShine Optical Co | Bioteque vs. United Orthopedic | Bioteque vs. Excelsior Medical Co | Bioteque vs. Pacific Hospital Supply |
| Chi Sheng vs. Arbor Technology | Chi Sheng vs. eCloudvalley Digital Technology | Chi Sheng vs. Genovate Biotechnology Co | Chi Sheng vs. ANJI Technology Co |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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