Correlation Between Landis Taipei and StShine Optical
Can any of the company-specific risk be diversified away by investing in both Landis Taipei and StShine Optical 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 Landis Taipei and StShine Optical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Landis Taipei Hotel and StShine Optical Co, you can compare the effects of market volatilities on Landis Taipei and StShine Optical 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 Landis Taipei with a short position of StShine Optical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Landis Taipei and StShine Optical.
Diversification Opportunities for Landis Taipei and StShine Optical
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Landis and StShine is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Landis Taipei Hotel and StShine Optical Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on StShine Optical and Landis Taipei 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 Landis Taipei Hotel are associated (or correlated) with StShine Optical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of StShine Optical has no effect on the direction of Landis Taipei i.e., Landis Taipei and StShine Optical go up and down completely randomly.
Pair Corralation between Landis Taipei and StShine Optical
Assuming the 90 days trading horizon Landis Taipei Hotel is expected to under-perform the StShine Optical. In addition to that, Landis Taipei is 1.25 times more volatile than StShine Optical Co. It trades about -0.06 of its total potential returns per unit of risk. StShine Optical Co is currently generating about 0.04 per unit of volatility. If you would invest 18,460 in StShine Optical Co on September 12, 2024 and sell it today you would earn a total of 2,540 from holding StShine Optical Co or generate 13.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Landis Taipei Hotel vs. StShine Optical Co
Performance |
| Timeline |
| Landis Taipei Hotel |
| StShine Optical |
Landis Taipei and StShine Optical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Landis Taipei and StShine Optical
The main advantage of trading using opposite Landis Taipei and StShine Optical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Landis Taipei position performs unexpectedly, StShine Optical 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 StShine Optical will offset losses from the drop in StShine Optical's long position.| Landis Taipei vs. Formosa International Hotels | Landis Taipei vs. Ambassador Hotel | Landis Taipei vs. FDC International Hotels | Landis Taipei vs. First Hotel Co |
| StShine Optical vs. Arbor Technology | StShine Optical vs. Chi Hua Fitness | StShine Optical vs. Alchip Technologies | StShine Optical vs. Microelectronics 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |