Correlation Between Tachan Securities and Yang Ming
Can any of the company-specific risk be diversified away by investing in both Tachan Securities and Yang Ming 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 Tachan Securities and Yang Ming into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tachan Securities Co and Yang Ming Marine, you can compare the effects of market volatilities on Tachan Securities and Yang Ming 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 Tachan Securities with a short position of Yang Ming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tachan Securities and Yang Ming.
Diversification Opportunities for Tachan Securities and Yang Ming
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Tachan and Yang is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Tachan Securities Co and Yang Ming Marine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yang Ming Marine and Tachan Securities 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 Tachan Securities Co are associated (or correlated) with Yang Ming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yang Ming Marine has no effect on the direction of Tachan Securities i.e., Tachan Securities and Yang Ming go up and down completely randomly.
Pair Corralation between Tachan Securities and Yang Ming
Assuming the 90 days trading horizon Tachan Securities Co is expected to generate 0.33 times more return on investment than Yang Ming. However, Tachan Securities Co is 3.07 times less risky than Yang Ming. It trades about 0.0 of its potential returns per unit of risk. Yang Ming Marine is currently generating about -0.27 per unit of risk. If you would invest 1,880 in Tachan Securities Co on October 20, 2024 and sell it today you would earn a total of 0.00 from holding Tachan Securities Co or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tachan Securities Co vs. Yang Ming Marine
Performance |
| Timeline |
| Tachan Securities |
| Yang Ming Marine |
Tachan Securities and Yang Ming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tachan Securities and Yang Ming
The main advantage of trading using opposite Tachan Securities and Yang Ming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tachan Securities position performs unexpectedly, Yang Ming 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 Yang Ming will offset losses from the drop in Yang Ming's long position.| Tachan Securities vs. Hung Sheng Construction | Tachan Securities vs. Mercuries Life Insurance | Tachan Securities vs. YungShin Global Holding | Tachan Securities vs. First Hotel Co |
| Yang Ming vs. Evergreen Marine Corp | Yang Ming vs. Wan Hai Lines | Yang Ming vs. China Airlines | Yang Ming vs. Eva Airways Corp |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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