Correlation Between Ok Biotech and BenQ Medical
Can any of the company-specific risk be diversified away by investing in both Ok Biotech and BenQ Medical 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 Ok Biotech and BenQ Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ok Biotech Co and BenQ Medical Technology, you can compare the effects of market volatilities on Ok Biotech and BenQ Medical 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 Ok Biotech with a short position of BenQ Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ok Biotech and BenQ Medical.
Diversification Opportunities for Ok Biotech and BenQ Medical
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between 4155 and BenQ is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Ok Biotech Co and BenQ Medical Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BenQ Medical Technology and Ok Biotech 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 Ok Biotech Co are associated (or correlated) with BenQ Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BenQ Medical Technology has no effect on the direction of Ok Biotech i.e., Ok Biotech and BenQ Medical go up and down completely randomly.
Pair Corralation between Ok Biotech and BenQ Medical
Assuming the 90 days trading horizon Ok Biotech Co is expected to generate 1.56 times more return on investment than BenQ Medical. However, Ok Biotech is 1.56 times more volatile than BenQ Medical Technology. It trades about -0.19 of its potential returns per unit of risk. BenQ Medical Technology is currently generating about -0.33 per unit of risk. If you would invest 2,435 in Ok Biotech Co on September 4, 2024 and sell it today you would lose (225.00) from holding Ok Biotech Co or give up 9.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ok Biotech Co vs. BenQ Medical Technology
Performance |
| Timeline |
| Ok Biotech |
| BenQ Medical Technology |
Ok Biotech and BenQ Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ok Biotech and BenQ Medical
The main advantage of trading using opposite Ok Biotech and BenQ Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ok Biotech position performs unexpectedly, BenQ Medical 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 BenQ Medical will offset losses from the drop in BenQ Medical's long position.| Ok Biotech vs. Solar Applied Materials | Ok Biotech vs. Daxin Materials Corp | Ok Biotech vs. Goldsun Building Materials | Ok Biotech vs. Taiwan Chinsan Electronic |
| BenQ Medical vs. StShine Optical Co | BenQ Medical vs. Bioteque | BenQ Medical vs. TTY Biopharm Co | BenQ Medical vs. Apex Biotechnology 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Stocks Directory Find actively traded stocks across global markets |