Correlation Between TBI Motion and San Shing
Can any of the company-specific risk be diversified away by investing in both TBI Motion and San Shing 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 San Shing 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 San Shing Fastech, you can compare the effects of market volatilities on TBI Motion and San Shing 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 San Shing. Check out your portfolio center. Please also check ongoing floating volatility patterns of TBI Motion and San Shing.
Diversification Opportunities for TBI Motion and San Shing
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between TBI and San is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding TBI Motion Technology and San Shing Fastech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on San Shing Fastech 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 San Shing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of San Shing Fastech has no effect on the direction of TBI Motion i.e., TBI Motion and San Shing go up and down completely randomly.
Pair Corralation between TBI Motion and San Shing
Assuming the 90 days trading horizon TBI Motion Technology is expected to generate 3.3 times more return on investment than San Shing. However, TBI Motion is 3.3 times more volatile than San Shing Fastech. It trades about -0.02 of its potential returns per unit of risk. San Shing Fastech is currently generating about -0.12 per unit of risk. If you would invest 4,240 in TBI Motion Technology on September 12, 2024 and sell it today you would lose (70.00) from holding TBI Motion Technology or give up 1.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
TBI Motion Technology vs. San Shing Fastech
Performance |
| Timeline |
| TBI Motion Technology |
| San Shing Fastech |
TBI Motion and San Shing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TBI Motion and San Shing
The main advantage of trading using opposite TBI Motion and San Shing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TBI Motion position performs unexpectedly, San Shing 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 San Shing will offset losses from the drop in San Shing'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 |
| San Shing vs. Yang Ming Marine | San Shing vs. Wan Hai Lines | San Shing vs. U Ming Marine Transport | San Shing vs. Taiwan Navigation Co |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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