Correlation Between SS Healthcare and Winstek Semiconductor
Can any of the company-specific risk be diversified away by investing in both SS Healthcare and Winstek Semiconductor 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 Winstek Semiconductor 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 Winstek Semiconductor Co, you can compare the effects of market volatilities on SS Healthcare and Winstek Semiconductor 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 Winstek Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of SS Healthcare and Winstek Semiconductor.
Diversification Opportunities for SS Healthcare and Winstek Semiconductor
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 4198 and Winstek is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding SS Healthcare Holding and Winstek Semiconductor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Winstek Semiconductor 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 Winstek Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Winstek Semiconductor has no effect on the direction of SS Healthcare i.e., SS Healthcare and Winstek Semiconductor go up and down completely randomly.
Pair Corralation between SS Healthcare and Winstek Semiconductor
Assuming the 90 days trading horizon SS Healthcare Holding is expected to generate 1.54 times more return on investment than Winstek Semiconductor. However, SS Healthcare is 1.54 times more volatile than Winstek Semiconductor Co. It trades about 0.06 of its potential returns per unit of risk. Winstek Semiconductor Co is currently generating about 0.03 per unit of risk. If you would invest 3,105 in SS Healthcare Holding on October 11, 2024 and sell it today you would earn a total of 85.00 from holding SS Healthcare Holding or generate 2.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SS Healthcare Holding vs. Winstek Semiconductor Co
Performance |
| Timeline |
| SS Healthcare Holding |
| Winstek Semiconductor |
SS Healthcare and Winstek Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SS Healthcare and Winstek Semiconductor
The main advantage of trading using opposite SS Healthcare and Winstek Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SS Healthcare position performs unexpectedly, Winstek Semiconductor 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 Winstek Semiconductor will offset losses from the drop in Winstek Semiconductor's long position.| SS Healthcare vs. Posiflex Technology | SS Healthcare vs. Nova Technology | SS Healthcare vs. Asmedia Technology | SS Healthcare vs. Pili International Multimedia |
| Winstek Semiconductor vs. Pacific Hospital Supply | Winstek Semiconductor vs. Chi Hua Fitness | Winstek Semiconductor vs. SS Healthcare Holding | Winstek Semiconductor vs. Onyx Healthcare |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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