Correlation Between Chailease Holding and Taishin Financial
Can any of the company-specific risk be diversified away by investing in both Chailease Holding and Taishin Financial 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 Taishin Financial 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 Taishin Financial Holding, you can compare the effects of market volatilities on Chailease Holding and Taishin Financial 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 Taishin Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chailease Holding and Taishin Financial.
Diversification Opportunities for Chailease Holding and Taishin Financial
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Chailease and Taishin is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Chailease Holding Co and Taishin Financial Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Taishin Financial Holding 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 Taishin Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Taishin Financial Holding has no effect on the direction of Chailease Holding i.e., Chailease Holding and Taishin Financial go up and down completely randomly.
Pair Corralation between Chailease Holding and Taishin Financial
Assuming the 90 days trading horizon Chailease Holding Co is expected to under-perform the Taishin Financial. In addition to that, Chailease Holding is 5.0 times more volatile than Taishin Financial Holding. It trades about -0.05 of its total potential returns per unit of risk. Taishin Financial Holding is currently generating about 0.01 per unit of volatility. If you would invest 5,010 in Taishin Financial Holding on August 24, 2024 and sell it today you would earn a total of 90.00 from holding Taishin Financial Holding or generate 1.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Chailease Holding Co vs. Taishin Financial Holding
Performance |
| Timeline |
| Chailease Holding |
| Taishin Financial Holding |
Chailease Holding and Taishin Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chailease Holding and Taishin Financial
The main advantage of trading using opposite Chailease Holding and Taishin Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chailease Holding position performs unexpectedly, Taishin Financial 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 Taishin Financial will offset losses from the drop in Taishin Financial's long position.| Chailease Holding vs. Fubon Financial Holding | Chailease Holding vs. Cathay Financial Holding | Chailease Holding vs. ESUN Financial Holding |
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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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