Correlation Between Good Finance and Tai Tung
Can any of the company-specific risk be diversified away by investing in both Good Finance and Tai Tung 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 Tai Tung 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 Tai Tung Communication, you can compare the effects of market volatilities on Good Finance and Tai Tung 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 Tai Tung. Check out your portfolio center. Please also check ongoing floating volatility patterns of Good Finance and Tai Tung.
Diversification Opportunities for Good Finance and Tai Tung
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Good and Tai is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Good Finance Securities and Tai Tung Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tai Tung Communication 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 Tai Tung. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tai Tung Communication has no effect on the direction of Good Finance i.e., Good Finance and Tai Tung go up and down completely randomly.
Pair Corralation between Good Finance and Tai Tung
Assuming the 90 days trading horizon Good Finance Securities is expected to generate 0.67 times more return on investment than Tai Tung. However, Good Finance Securities is 1.49 times less risky than Tai Tung. It trades about 0.1 of its potential returns per unit of risk. Tai Tung Communication is currently generating about -0.37 per unit of risk. If you would invest 2,360 in Good Finance Securities on October 28, 2024 and sell it today you would earn a total of 40.00 from holding Good Finance Securities or generate 1.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Good Finance Securities vs. Tai Tung Communication
Performance |
| Timeline |
| Good Finance Securities |
| Tai Tung Communication |
Good Finance and Tai Tung Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Good Finance and Tai Tung
The main advantage of trading using opposite Good Finance and Tai Tung positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Good Finance position performs unexpectedly, Tai Tung 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 Tai Tung will offset losses from the drop in Tai Tung's long position.| Good Finance vs. Concord Securities Co | Good Finance vs. Capital Securities Corp | Good Finance vs. Sinopac Financial Holdings | Good Finance vs. Inventec Corp |
| Tai Tung vs. Zinwell | Tai Tung vs. Mercuries Life Insurance | Tai Tung vs. Darwin Precisions Corp | Tai Tung vs. Jinli Group Holdings |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |