Correlation Between Good Finance and Tachan Securities
Can any of the company-specific risk be diversified away by investing in both Good Finance and Tachan Securities 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 Good Finance and Tachan Securities into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Good Finance Securities and Tachan Securities Co, you can compare the effects of market volatilities on Good Finance and Tachan Securities 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 Good Finance with a short position of Tachan Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Good Finance and Tachan Securities.
Diversification Opportunities for Good Finance and Tachan Securities
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Good and Tachan is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Good Finance Securities and Tachan Securities Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tachan Securities and Good Finance 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 Good Finance Securities are associated (or correlated) with Tachan Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tachan Securities has no effect on the direction of Good Finance i.e., Good Finance and Tachan Securities go up and down completely randomly.
Pair Corralation between Good Finance and Tachan Securities
Assuming the 90 days trading horizon Good Finance Securities is expected to generate 3.75 times more return on investment than Tachan Securities. However, Good Finance is 3.75 times more volatile than Tachan Securities Co. It trades about 0.09 of its potential returns per unit of risk. Tachan Securities Co is currently generating about 0.03 per unit of risk. 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 |
Good Finance Securities vs. Tachan Securities Co
Performance |
| Timeline |
| Good Finance Securities |
| Tachan Securities |
Good Finance and Tachan Securities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Good Finance and Tachan Securities
The main advantage of trading using opposite Good Finance and Tachan Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Good Finance position performs unexpectedly, Tachan Securities 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 Tachan Securities will offset losses from the drop in Tachan Securities' long position.| Good Finance vs. IBF Financial Holdings | Good Finance vs. Capital Securities Corp | Good Finance vs. President Securities Corp | Good Finance vs. China Bills Finance |
| Tachan Securities vs. Mechema Chemicals Int | Tachan Securities vs. Yong Shun Chemical | Tachan Securities vs. Sports Gear Co | Tachan Securities vs. Taiwan Speciality Chemicals |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |