Correlation Between TBI Motion and Ta Liang
Can any of the company-specific risk be diversified away by investing in both TBI Motion and Ta Liang 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 TBI Motion and Ta Liang into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TBI Motion Technology and Ta Liang Technology, you can compare the effects of market volatilities on TBI Motion and Ta Liang 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 TBI Motion with a short position of Ta Liang. Check out your portfolio center. Please also check ongoing floating volatility patterns of TBI Motion and Ta Liang.
Diversification Opportunities for TBI Motion and Ta Liang
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between TBI and 3167 is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding TBI Motion Technology and Ta Liang Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ta Liang Technology and TBI Motion 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 TBI Motion Technology are associated (or correlated) with Ta Liang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ta Liang Technology has no effect on the direction of TBI Motion i.e., TBI Motion and Ta Liang go up and down completely randomly.
Pair Corralation between TBI Motion and Ta Liang
Assuming the 90 days trading horizon TBI Motion is expected to generate 2.75 times less return on investment than Ta Liang. But when comparing it to its historical volatility, TBI Motion Technology is 1.33 times less risky than Ta Liang. It trades about 0.05 of its potential returns per unit of risk. Ta Liang Technology is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 6,350 in Ta Liang Technology on September 3, 2024 and sell it today you would earn a total of 5,200 from holding Ta Liang Technology or generate 81.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TBI Motion Technology vs. Ta Liang Technology
Performance |
| Timeline |
| TBI Motion Technology |
| Ta Liang Technology |
TBI Motion and Ta Liang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TBI Motion and Ta Liang
The main advantage of trading using opposite TBI Motion and Ta Liang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TBI Motion position performs unexpectedly, Ta Liang 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 Ta Liang will offset losses from the drop in Ta Liang's long position.| TBI Motion vs. Hiwin Technologies Corp | TBI Motion vs. Airtac International Group | TBI Motion vs. Taiwan Chelic Corp | TBI Motion vs. Kung Long Batteries |
| Ta Liang vs. Highlight Tech | Ta Liang vs. WiseChip Semiconductor | Ta Liang vs. Novatek Microelectronics Corp | Ta Liang vs. Leader Electronics |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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