Correlation Between Tait Marketing and Strong H
Can any of the company-specific risk be diversified away by investing in both Tait Marketing and Strong H 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 Tait Marketing and Strong H into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tait Marketing Distribution and Strong H Machinery, you can compare the effects of market volatilities on Tait Marketing and Strong H 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 Tait Marketing with a short position of Strong H. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tait Marketing and Strong H.
Diversification Opportunities for Tait Marketing and Strong H
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Tait and Strong is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Tait Marketing Distribution and Strong H Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Strong H Machinery and Tait Marketing 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 Tait Marketing Distribution are associated (or correlated) with Strong H. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Strong H Machinery has no effect on the direction of Tait Marketing i.e., Tait Marketing and Strong H go up and down completely randomly.
Pair Corralation between Tait Marketing and Strong H
Assuming the 90 days trading horizon Tait Marketing is expected to generate 5.06 times less return on investment than Strong H. But when comparing it to its historical volatility, Tait Marketing Distribution is 2.47 times less risky than Strong H. It trades about 0.14 of its potential returns per unit of risk. Strong H Machinery is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 3,330 in Strong H Machinery on September 13, 2024 and sell it today you would earn a total of 335.00 from holding Strong H Machinery or generate 10.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tait Marketing Distribution vs. Strong H Machinery
Performance |
| Timeline |
| Tait Marketing Distr |
| Strong H Machinery |
Tait Marketing and Strong H Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tait Marketing and Strong H
The main advantage of trading using opposite Tait Marketing and Strong H positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tait Marketing position performs unexpectedly, Strong H 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 Strong H will offset losses from the drop in Strong H's long position.| Tait Marketing vs. YuantaP shares Taiwan Electronics | Tait Marketing vs. YuantaP shares Taiwan Top | Tait Marketing vs. Fubon MSCI Taiwan | Tait Marketing vs. YuantaP shares Taiwan Mid Cap |
| Strong H vs. Hiwin Mikrosystem Corp | Strong H vs. Ruentex Development Co | Strong H vs. Symtek Automation Asia | Strong H 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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