Correlation Between Tachan Securities and Good Finance
Can any of the company-specific risk be diversified away by investing in both Tachan Securities and Good Finance 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 Good Finance 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 Good Finance Securities, you can compare the effects of market volatilities on Tachan Securities and Good Finance 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 Good Finance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tachan Securities and Good Finance.
Diversification Opportunities for Tachan Securities and Good Finance
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Tachan and Good is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Tachan Securities Co and Good Finance Securities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Good Finance Securities 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 Good Finance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Good Finance Securities has no effect on the direction of Tachan Securities i.e., Tachan Securities and Good Finance go up and down completely randomly.
Pair Corralation between Tachan Securities and Good Finance
Assuming the 90 days trading horizon Tachan Securities is expected to generate 10.17 times less return on investment than Good Finance. But when comparing it to its historical volatility, Tachan Securities Co is 3.75 times less risky than Good Finance. It trades about 0.03 of its potential returns per unit of risk. Good Finance Securities is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1,480 in Good Finance Securities on September 14, 2024 and sell it today you would earn a total of 920.00 from holding Good Finance Securities or generate 62.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tachan Securities Co vs. Good Finance Securities
Performance |
| Timeline |
| Tachan Securities |
| Good Finance Securities |
Tachan Securities and Good Finance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tachan Securities and Good Finance
The main advantage of trading using opposite Tachan Securities and Good Finance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tachan Securities position performs unexpectedly, Good Finance 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 Good Finance will offset losses from the drop in Good Finance's long position.| Tachan Securities vs. Mechema Chemicals Int | Tachan Securities vs. Yong Shun Chemical | Tachan Securities vs. Sports Gear Co | Tachan Securities vs. Taiwan Speciality Chemicals |
| Good Finance vs. IBF Financial Holdings | Good Finance vs. Capital Securities Corp | Good Finance vs. President Securities Corp | Good Finance vs. China Bills Finance |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |