Correlation Between Chailease Holding and Pou Chen
Can any of the company-specific risk be diversified away by investing in both Chailease Holding and Pou Chen 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 Pou Chen 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 Pou Chen Corp, you can compare the effects of market volatilities on Chailease Holding and Pou Chen 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 Pou Chen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chailease Holding and Pou Chen.
Diversification Opportunities for Chailease Holding and Pou Chen
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Chailease and Pou is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Chailease Holding Co and Pou Chen Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pou Chen Corp 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 Pou Chen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pou Chen Corp has no effect on the direction of Chailease Holding i.e., Chailease Holding and Pou Chen go up and down completely randomly.
Pair Corralation between Chailease Holding and Pou Chen
Assuming the 90 days trading horizon Chailease Holding Co is expected to under-perform the Pou Chen. In addition to that, Chailease Holding is 1.38 times more volatile than Pou Chen Corp. It trades about -0.43 of its total potential returns per unit of risk. Pou Chen Corp is currently generating about 0.38 per unit of volatility. If you would invest 3,755 in Pou Chen Corp on August 24, 2024 and sell it today you would earn a total of 615.00 from holding Pou Chen Corp or generate 16.38% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 95.65% |
Values | Daily Returns |
Chailease Holding Co vs. Pou Chen Corp
Performance |
Timeline |
Chailease Holding |
Pou Chen Corp |
Chailease Holding and Pou Chen Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Chailease Holding and Pou Chen
The main advantage of trading using opposite Chailease Holding and Pou Chen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chailease Holding position performs unexpectedly, Pou Chen 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 Pou Chen will offset losses from the drop in Pou Chen's long position.Chailease Holding vs. Fubon Financial Holding | Chailease Holding vs. Cathay Financial Holding | Chailease Holding vs. ESUN Financial Holding |
Pou Chen vs. Uni President Enterprises Corp | Pou Chen vs. Cheng Shin Rubber | Pou Chen vs. Far Eastern New | Pou Chen vs. Formosa Chemicals Fibre |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |