Correlation Between Chi Sheng and Phoenix Silicon
Can any of the company-specific risk be diversified away by investing in both Chi Sheng and Phoenix Silicon 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 Chi Sheng and Phoenix Silicon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chi Sheng Chemical and Phoenix Silicon International, you can compare the effects of market volatilities on Chi Sheng and Phoenix Silicon 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 Chi Sheng with a short position of Phoenix Silicon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chi Sheng and Phoenix Silicon.
Diversification Opportunities for Chi Sheng and Phoenix Silicon
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Chi and Phoenix is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Chi Sheng Chemical and Phoenix Silicon International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Phoenix Silicon Inte and Chi Sheng 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 Chi Sheng Chemical are associated (or correlated) with Phoenix Silicon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Phoenix Silicon Inte has no effect on the direction of Chi Sheng i.e., Chi Sheng and Phoenix Silicon go up and down completely randomly.
Pair Corralation between Chi Sheng and Phoenix Silicon
Assuming the 90 days trading horizon Chi Sheng Chemical is expected to generate 0.56 times more return on investment than Phoenix Silicon. However, Chi Sheng Chemical is 1.79 times less risky than Phoenix Silicon. It trades about 0.01 of its potential returns per unit of risk. Phoenix Silicon International is currently generating about -0.02 per unit of risk. If you would invest 2,885 in Chi Sheng Chemical on October 12, 2024 and sell it today you would earn a total of 5.00 from holding Chi Sheng Chemical or generate 0.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chi Sheng Chemical vs. Phoenix Silicon International
Performance |
| Timeline |
| Chi Sheng Chemical |
| Phoenix Silicon Inte |
Chi Sheng and Phoenix Silicon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chi Sheng and Phoenix Silicon
The main advantage of trading using opposite Chi Sheng and Phoenix Silicon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chi Sheng position performs unexpectedly, Phoenix Silicon 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 Phoenix Silicon will offset losses from the drop in Phoenix Silicon's long position.| Chi Sheng vs. PChome Online | Chi Sheng vs. Lien Chang Electronic | Chi Sheng vs. Bright Led Electronics | Chi Sheng vs. Everlight Electronics Co |
| Phoenix Silicon vs. Scientech Corp | Phoenix Silicon vs. Sitronix Technology Corp | Phoenix Silicon vs. Kinsus Interconnect Technology | Phoenix Silicon vs. Andes Technology Corp |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |