Correlation Between Gloria Material and BenQ Medical
Can any of the company-specific risk be diversified away by investing in both Gloria Material and BenQ Medical 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 Gloria Material and BenQ Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gloria Material Technology and BenQ Medical Technology, you can compare the effects of market volatilities on Gloria Material and BenQ Medical 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 Gloria Material with a short position of BenQ Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gloria Material and BenQ Medical.
Diversification Opportunities for Gloria Material and BenQ Medical
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Gloria and BenQ is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Gloria Material Technology and BenQ Medical Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BenQ Medical Technology and Gloria Material 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 Gloria Material Technology are associated (or correlated) with BenQ Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BenQ Medical Technology has no effect on the direction of Gloria Material i.e., Gloria Material and BenQ Medical go up and down completely randomly.
Pair Corralation between Gloria Material and BenQ Medical
Assuming the 90 days trading horizon Gloria Material Technology is expected to generate 0.96 times more return on investment than BenQ Medical. However, Gloria Material Technology is 1.05 times less risky than BenQ Medical. It trades about -0.15 of its potential returns per unit of risk. BenQ Medical Technology is currently generating about -0.22 per unit of risk. If you would invest 4,755 in Gloria Material Technology on October 11, 2024 and sell it today you would lose (200.00) from holding Gloria Material Technology or give up 4.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gloria Material Technology vs. BenQ Medical Technology
Performance |
| Timeline |
| Gloria Material Tech |
| BenQ Medical Technology |
Gloria Material and BenQ Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gloria Material and BenQ Medical
The main advantage of trading using opposite Gloria Material and BenQ Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gloria Material position performs unexpectedly, BenQ Medical 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 BenQ Medical will offset losses from the drop in BenQ Medical's long position.| Gloria Material vs. Thunder Tiger Corp | Gloria Material vs. Synmosa Biopharma | Gloria Material vs. Taiwan Glass Ind | Gloria Material vs. Tong Tai Machine Tool |
| BenQ Medical vs. Evermore Chemical Industry | BenQ Medical vs. Acelon Chemicals Fiber | BenQ Medical vs. Shinkong Synthetic Fiber | BenQ Medical vs. Gloria Material 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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