Correlation Between WiseChip Semiconductor and Ching Feng
Can any of the company-specific risk be diversified away by investing in both WiseChip Semiconductor and Ching Feng 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 WiseChip Semiconductor and Ching Feng into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WiseChip Semiconductor and Ching Feng Home, you can compare the effects of market volatilities on WiseChip Semiconductor and Ching Feng 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 WiseChip Semiconductor with a short position of Ching Feng. Check out your portfolio center. Please also check ongoing floating volatility patterns of WiseChip Semiconductor and Ching Feng.
Diversification Opportunities for WiseChip Semiconductor and Ching Feng
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between WiseChip and Ching is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding WiseChip Semiconductor and Ching Feng Home in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ching Feng Home and WiseChip Semiconductor 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 WiseChip Semiconductor are associated (or correlated) with Ching Feng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ching Feng Home has no effect on the direction of WiseChip Semiconductor i.e., WiseChip Semiconductor and Ching Feng go up and down completely randomly.
Pair Corralation between WiseChip Semiconductor and Ching Feng
Assuming the 90 days trading horizon WiseChip Semiconductor is expected to under-perform the Ching Feng. In addition to that, WiseChip Semiconductor is 1.01 times more volatile than Ching Feng Home. It trades about -0.04 of its total potential returns per unit of risk. Ching Feng Home is currently generating about 0.07 per unit of volatility. If you would invest 1,765 in Ching Feng Home on September 3, 2024 and sell it today you would earn a total of 1,325 from holding Ching Feng Home or generate 75.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
WiseChip Semiconductor vs. Ching Feng Home
Performance |
| Timeline |
| WiseChip Semiconductor |
| Ching Feng Home |
WiseChip Semiconductor and Ching Feng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WiseChip Semiconductor and Ching Feng
The main advantage of trading using opposite WiseChip Semiconductor and Ching Feng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WiseChip Semiconductor position performs unexpectedly, Ching Feng 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 Ching Feng will offset losses from the drop in Ching Feng's long position.| WiseChip Semiconductor vs. Taiwan Semiconductor Manufacturing | WiseChip Semiconductor vs. Yang Ming Marine | WiseChip Semiconductor vs. ASE Industrial Holding | WiseChip Semiconductor vs. AU Optronics |
| Ching Feng vs. Tainan Spinning Co | Ching Feng vs. Chia Her Industrial | Ching Feng vs. WiseChip Semiconductor | Ching Feng vs. Novatek Microelectronics Corp |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Global Correlations Find global opportunities by holding instruments from different markets |