Correlation Between Strong H and KMC Kuei
Can any of the company-specific risk be diversified away by investing in both Strong H and KMC Kuei 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 Strong H and KMC Kuei into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Strong H Machinery and KMC Kuei Meng, you can compare the effects of market volatilities on Strong H and KMC Kuei 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 Strong H with a short position of KMC Kuei. Check out your portfolio center. Please also check ongoing floating volatility patterns of Strong H and KMC Kuei.
Diversification Opportunities for Strong H and KMC Kuei
Pay attention - limited upside
The 3 months correlation between Strong and KMC is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Strong H Machinery and KMC Kuei Meng in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KMC Kuei Meng and Strong H 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 Strong H Machinery are associated (or correlated) with KMC Kuei. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KMC Kuei Meng has no effect on the direction of Strong H i.e., Strong H and KMC Kuei go up and down completely randomly.
Pair Corralation between Strong H and KMC Kuei
If you would invest 3,330 in Strong H Machinery on September 13, 2024 and sell it today you would earn a total of 335.00 from holding Strong H Machinery or generate 10.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Strong H Machinery vs. KMC Kuei Meng
Performance |
| Timeline |
| Strong H Machinery |
| KMC Kuei Meng |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Strong H and KMC Kuei Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Strong H and KMC Kuei
The main advantage of trading using opposite Strong H and KMC Kuei positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Strong H position performs unexpectedly, KMC Kuei 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 KMC Kuei will offset losses from the drop in KMC Kuei's long position.| Strong H vs. Hiwin Mikrosystem Corp | Strong H vs. Ruentex Development Co | Strong H vs. Symtek Automation Asia | Strong H vs. WiseChip Semiconductor |
| KMC Kuei vs. Strong H Machinery | KMC Kuei vs. Eastern Media International | KMC Kuei vs. C Media Electronics | KMC Kuei vs. TECO Electric Machinery |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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