Correlation Between Tainet Communication and Camellia Metal
Can any of the company-specific risk be diversified away by investing in both Tainet Communication and Camellia Metal 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 Tainet Communication and Camellia Metal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tainet Communication System and Camellia Metal Co, you can compare the effects of market volatilities on Tainet Communication and Camellia Metal 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 Tainet Communication with a short position of Camellia Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tainet Communication and Camellia Metal.
Diversification Opportunities for Tainet Communication and Camellia Metal
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Tainet and Camellia is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Tainet Communication System and Camellia Metal Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Camellia Metal and Tainet Communication 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 Tainet Communication System are associated (or correlated) with Camellia Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Camellia Metal has no effect on the direction of Tainet Communication i.e., Tainet Communication and Camellia Metal go up and down completely randomly.
Pair Corralation between Tainet Communication and Camellia Metal
Assuming the 90 days trading horizon Tainet Communication System is expected to generate 1.99 times more return on investment than Camellia Metal. However, Tainet Communication is 1.99 times more volatile than Camellia Metal Co. It trades about 0.04 of its potential returns per unit of risk. Camellia Metal Co is currently generating about -0.02 per unit of risk. If you would invest 5,100 in Tainet Communication System on November 1, 2024 and sell it today you would earn a total of 2,700 from holding Tainet Communication System or generate 52.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tainet Communication System vs. Camellia Metal Co
Performance |
| Timeline |
| Tainet Communication |
| Camellia Metal |
Tainet Communication and Camellia Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tainet Communication and Camellia Metal
The main advantage of trading using opposite Tainet Communication and Camellia Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tainet Communication position performs unexpectedly, Camellia Metal 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 Camellia Metal will offset losses from the drop in Camellia Metal's long position.| Tainet Communication vs. Thinking Electronic Industrial | Tainet Communication vs. SuperAlloy Industrial Co, | Tainet Communication vs. Genovate Biotechnology Co | Tainet Communication vs. PChome Online |
| Camellia Metal vs. Zhen Ding Technology | Camellia Metal vs. Genovate Biotechnology Co | Camellia Metal vs. Asmedia Technology | Camellia Metal vs. Fubon Taiwan Technology |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Commodity Directory Find actively traded commodities issued by global exchanges |