Correlation Between SS Healthcare and Wei Chih
Can any of the company-specific risk be diversified away by investing in both SS Healthcare and Wei Chih 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 SS Healthcare and Wei Chih into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SS Healthcare Holding and Wei Chih Steel, you can compare the effects of market volatilities on SS Healthcare and Wei Chih 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 SS Healthcare with a short position of Wei Chih. Check out your portfolio center. Please also check ongoing floating volatility patterns of SS Healthcare and Wei Chih.
Diversification Opportunities for SS Healthcare and Wei Chih
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between 4198 and Wei is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding SS Healthcare Holding and Wei Chih Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wei Chih Steel and SS Healthcare 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 SS Healthcare Holding are associated (or correlated) with Wei Chih. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wei Chih Steel has no effect on the direction of SS Healthcare i.e., SS Healthcare and Wei Chih go up and down completely randomly.
Pair Corralation between SS Healthcare and Wei Chih
Assuming the 90 days trading horizon SS Healthcare Holding is expected to generate 2.78 times more return on investment than Wei Chih. However, SS Healthcare is 2.78 times more volatile than Wei Chih Steel. It trades about 0.0 of its potential returns per unit of risk. Wei Chih Steel is currently generating about -0.1 per unit of risk. If you would invest 3,245 in SS Healthcare Holding on September 3, 2024 and sell it today you would lose (35.00) from holding SS Healthcare Holding or give up 1.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SS Healthcare Holding vs. Wei Chih Steel
Performance |
| Timeline |
| SS Healthcare Holding |
| Wei Chih Steel |
SS Healthcare and Wei Chih Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SS Healthcare and Wei Chih
The main advantage of trading using opposite SS Healthcare and Wei Chih positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SS Healthcare position performs unexpectedly, Wei Chih 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 Wei Chih will offset losses from the drop in Wei Chih's long position.| SS Healthcare vs. Sunspring Metal Corp | SS Healthcare vs. WinMate Communication INC | SS Healthcare vs. Asia Metal Industries | SS Healthcare vs. RiTdisplay 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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