Correlation Between Brogent Technologies and Transcend Information
Can any of the company-specific risk be diversified away by investing in both Brogent Technologies and Transcend Information 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 Brogent Technologies and Transcend Information into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brogent Technologies and Transcend Information, you can compare the effects of market volatilities on Brogent Technologies and Transcend Information 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 Brogent Technologies with a short position of Transcend Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brogent Technologies and Transcend Information.
Diversification Opportunities for Brogent Technologies and Transcend Information
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Brogent and Transcend is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Brogent Technologies and Transcend Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Transcend Information and Brogent Technologies 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 Brogent Technologies are associated (or correlated) with Transcend Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Transcend Information has no effect on the direction of Brogent Technologies i.e., Brogent Technologies and Transcend Information go up and down completely randomly.
Pair Corralation between Brogent Technologies and Transcend Information
Assuming the 90 days trading horizon Brogent Technologies is expected to under-perform the Transcend Information. In addition to that, Brogent Technologies is 2.28 times more volatile than Transcend Information. It trades about -0.15 of its total potential returns per unit of risk. Transcend Information is currently generating about -0.11 per unit of volatility. If you would invest 9,740 in Transcend Information on September 12, 2024 and sell it today you would lose (320.00) from holding Transcend Information or give up 3.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Brogent Technologies vs. Transcend Information
Performance |
| Timeline |
| Brogent Technologies |
| Transcend Information |
Brogent Technologies and Transcend Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brogent Technologies and Transcend Information
The main advantage of trading using opposite Brogent Technologies and Transcend Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brogent Technologies position performs unexpectedly, Transcend Information 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 Transcend Information will offset losses from the drop in Transcend Information's long position.| Brogent Technologies vs. Insyde Software | Brogent Technologies vs. Otsuka Information Technology | Brogent Technologies vs. Provision Information CoLtd | Brogent Technologies vs. Ruentex Development Co |
| Transcend Information vs. AU Optronics | Transcend Information vs. Innolux Corp | Transcend Information vs. Ruentex Development Co | Transcend Information 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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