Correlation Between Intai Technology and Chi Sheng
Can any of the company-specific risk be diversified away by investing in both Intai Technology 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 Intai Technology and Chi Sheng into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intai Technology and Chi Sheng Chemical, you can compare the effects of market volatilities on Intai Technology 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 Intai Technology with a short position of Chi Sheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intai Technology and Chi Sheng.
Diversification Opportunities for Intai Technology and Chi Sheng
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Intai and Chi is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Intai Technology 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 Intai Technology 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 Intai Technology 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 Intai Technology i.e., Intai Technology and Chi Sheng go up and down completely randomly.
Pair Corralation between Intai Technology and Chi Sheng
Assuming the 90 days trading horizon Intai Technology is expected to generate 139.0 times less return on investment than Chi Sheng. But when comparing it to its historical volatility, Intai Technology is 2.69 times less risky than Chi Sheng. It trades about 0.0 of its potential returns per unit of risk. Chi Sheng Chemical is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 2,780 in Chi Sheng Chemical on October 24, 2024 and sell it today you would earn a total of 70.00 from holding Chi Sheng Chemical or generate 2.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intai Technology vs. Chi Sheng Chemical
Performance |
| Timeline |
| Intai Technology |
| Chi Sheng Chemical |
Intai Technology and Chi Sheng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intai Technology and Chi Sheng
The main advantage of trading using opposite Intai Technology and Chi Sheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intai Technology 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.| Intai Technology vs. Nankang Rubber Tire | Intai Technology vs. Ruentex Materials Co | Intai Technology vs. CHC Healthcare Group | Intai Technology vs. Power Wind Health |
| Chi Sheng vs. Davicom Semiconductor | Chi Sheng vs. K Way Information | Chi Sheng vs. Niko Semiconductor Co | Chi Sheng vs. Phytohealth 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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