Correlation Between Chailease Holding and MediaTek
Can any of the company-specific risk be diversified away by investing in both Chailease Holding and MediaTek 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 Chailease Holding and MediaTek into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chailease Holding Co and MediaTek, you can compare the effects of market volatilities on Chailease Holding and MediaTek 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 Chailease Holding with a short position of MediaTek. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chailease Holding and MediaTek.
Diversification Opportunities for Chailease Holding and MediaTek
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Chailease and MediaTek is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Chailease Holding Co and MediaTek in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MediaTek and Chailease Holding 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 Chailease Holding Co are associated (or correlated) with MediaTek. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MediaTek has no effect on the direction of Chailease Holding i.e., Chailease Holding and MediaTek go up and down completely randomly.
Pair Corralation between Chailease Holding and MediaTek
Assuming the 90 days trading horizon Chailease Holding Co is expected to under-perform the MediaTek. But the stock apears to be less risky and, when comparing its historical volatility, Chailease Holding Co is 1.02 times less risky than MediaTek. The stock trades about -0.32 of its potential returns per unit of risk. The MediaTek is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 126,000 in MediaTek on August 28, 2024 and sell it today you would earn a total of 2,000 from holding MediaTek or generate 1.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chailease Holding Co vs. MediaTek
Performance |
| Timeline |
| Chailease Holding |
| MediaTek |
Chailease Holding and MediaTek Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chailease Holding and MediaTek
The main advantage of trading using opposite Chailease Holding and MediaTek positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chailease Holding position performs unexpectedly, MediaTek 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 MediaTek will offset losses from the drop in MediaTek's long position.| Chailease Holding vs. Fubon Financial Holding | Chailease Holding vs. CTBC Financial Holding | Chailease Holding vs. Mega Financial Holding | Chailease Holding vs. Cathay Financial Holding |
| MediaTek vs. Hon Hai Precision | MediaTek vs. United Microelectronics | MediaTek vs. LARGAN Precision Co | MediaTek vs. Delta Electronics |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Stocks Directory Find actively traded stocks across global markets |