Correlation Between BenQ Medical and Chang Type
Can any of the company-specific risk be diversified away by investing in both BenQ Medical and Chang Type 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 BenQ Medical and Chang Type into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BenQ Medical Technology and Chang Type Industrial, you can compare the effects of market volatilities on BenQ Medical and Chang Type 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 BenQ Medical with a short position of Chang Type. Check out your portfolio center. Please also check ongoing floating volatility patterns of BenQ Medical and Chang Type.
Diversification Opportunities for BenQ Medical and Chang Type
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between BenQ and Chang is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding BenQ Medical Technology and Chang Type Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chang Type Industrial and BenQ 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 BenQ Medical Technology are associated (or correlated) with Chang Type. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chang Type Industrial has no effect on the direction of BenQ Medical i.e., BenQ Medical and Chang Type go up and down completely randomly.
Pair Corralation between BenQ Medical and Chang Type
Assuming the 90 days trading horizon BenQ Medical Technology is expected to under-perform the Chang Type. But the stock apears to be less risky and, when comparing its historical volatility, BenQ Medical Technology is 1.16 times less risky than Chang Type. The stock trades about -0.1 of its potential returns per unit of risk. The Chang Type Industrial is currently generating about -0.09 of returns per unit of risk over similar time horizon. If you would invest 2,785 in Chang Type Industrial on October 26, 2024 and sell it today you would lose (170.00) from holding Chang Type Industrial or give up 6.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
BenQ Medical Technology vs. Chang Type Industrial
Performance |
| Timeline |
| BenQ Medical Technology |
| Chang Type Industrial |
BenQ Medical and Chang Type Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BenQ Medical and Chang Type
The main advantage of trading using opposite BenQ Medical and Chang Type positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BenQ Medical position performs unexpectedly, Chang Type 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 Chang Type will offset losses from the drop in Chang Type's long position.| BenQ Medical vs. Sunspring Metal Corp | BenQ Medical vs. AVer Information | BenQ Medical vs. Jentech Precision Industrial | BenQ Medical vs. Transcend Information |
| Chang Type vs. Hi Lai Foods Co | Chang Type vs. Formosa Chemicals Fibre | Chang Type vs. Thinking Electronic Industrial | Chang Type vs. BenQ Medical Technology |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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