Correlation Between Grand Fortune and Tachan Securities
Can any of the company-specific risk be diversified away by investing in both Grand Fortune 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 Grand Fortune and Tachan Securities into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grand Fortune Securities and Tachan Securities Co, you can compare the effects of market volatilities on Grand Fortune 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 Grand Fortune with a short position of Tachan Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grand Fortune and Tachan Securities.
Diversification Opportunities for Grand Fortune and Tachan Securities
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Grand and Tachan is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Grand Fortune 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 Grand Fortune 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 Grand Fortune 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 Grand Fortune i.e., Grand Fortune and Tachan Securities go up and down completely randomly.
Pair Corralation between Grand Fortune and Tachan Securities
Assuming the 90 days trading horizon Grand Fortune Securities is expected to generate 2.25 times more return on investment than Tachan Securities. However, Grand Fortune is 2.25 times more volatile than Tachan Securities Co. It trades about 0.03 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 1,159 in Grand Fortune Securities on September 14, 2024 and sell it today you would earn a total of 96.00 from holding Grand Fortune Securities or generate 8.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grand Fortune Securities vs. Tachan Securities Co
Performance |
| Timeline |
| Grand Fortune Securities |
| Tachan Securities |
Grand Fortune and Tachan Securities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grand Fortune and Tachan Securities
The main advantage of trading using opposite Grand Fortune and Tachan Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grand Fortune 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.| Grand Fortune vs. IBF Financial Holdings | Grand Fortune vs. Capital Securities Corp | Grand Fortune vs. President Securities Corp | Grand Fortune 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |