Correlation Between Chia Chang and Emerging Display
Can any of the company-specific risk be diversified away by investing in both Chia Chang and Emerging Display 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 Chia Chang and Emerging Display into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chia Chang Co and Emerging Display Technologies, you can compare the effects of market volatilities on Chia Chang and Emerging Display 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 Chia Chang with a short position of Emerging Display. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chia Chang and Emerging Display.
Diversification Opportunities for Chia Chang and Emerging Display
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Chia and Emerging is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Chia Chang Co and Emerging Display Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emerging Display Tec and Chia Chang 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 Chia Chang Co are associated (or correlated) with Emerging Display. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emerging Display Tec has no effect on the direction of Chia Chang i.e., Chia Chang and Emerging Display go up and down completely randomly.
Pair Corralation between Chia Chang and Emerging Display
Assuming the 90 days trading horizon Chia Chang Co is expected to generate 0.68 times more return on investment than Emerging Display. However, Chia Chang Co is 1.47 times less risky than Emerging Display. It trades about -0.02 of its potential returns per unit of risk. Emerging Display Technologies is currently generating about -0.02 per unit of risk. If you would invest 4,360 in Chia Chang Co on September 12, 2024 and sell it today you would lose (270.00) from holding Chia Chang Co or give up 6.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chia Chang Co vs. Emerging Display Technologies
Performance |
| Timeline |
| Chia Chang |
| Emerging Display Tec |
Chia Chang and Emerging Display Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chia Chang and Emerging Display
The main advantage of trading using opposite Chia Chang and Emerging Display positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chia Chang position performs unexpectedly, Emerging Display 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 Emerging Display will offset losses from the drop in Emerging Display's long position.| Chia Chang vs. Yang Ming Marine | Chia Chang vs. Wan Hai Lines | Chia Chang vs. U Ming Marine Transport | Chia Chang vs. Taiwan Navigation Co |
| Emerging Display vs. AU Optronics | Emerging Display vs. Innolux Corp | Emerging Display vs. Ruentex Development Co | Emerging Display vs. WiseChip Semiconductor |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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