Correlation Between Singatron Enterprise and Bank of Kaohsiung
Can any of the company-specific risk be diversified away by investing in both Singatron Enterprise and Bank of Kaohsiung 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 Singatron Enterprise and Bank of Kaohsiung into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Singatron Enterprise Co and Bank of Kaohsiung, you can compare the effects of market volatilities on Singatron Enterprise and Bank of Kaohsiung 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 Singatron Enterprise with a short position of Bank of Kaohsiung. Check out your portfolio center. Please also check ongoing floating volatility patterns of Singatron Enterprise and Bank of Kaohsiung.
Diversification Opportunities for Singatron Enterprise and Bank of Kaohsiung
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Singatron and Bank is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Singatron Enterprise Co and Bank of Kaohsiung in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of Kaohsiung and Singatron Enterprise 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 Singatron Enterprise Co are associated (or correlated) with Bank of Kaohsiung. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of Kaohsiung has no effect on the direction of Singatron Enterprise i.e., Singatron Enterprise and Bank of Kaohsiung go up and down completely randomly.
Pair Corralation between Singatron Enterprise and Bank of Kaohsiung
Assuming the 90 days trading horizon Singatron Enterprise Co is expected to generate 3.46 times more return on investment than Bank of Kaohsiung. However, Singatron Enterprise is 3.46 times more volatile than Bank of Kaohsiung. It trades about 0.02 of its potential returns per unit of risk. Bank of Kaohsiung is currently generating about -0.01 per unit of risk. If you would invest 3,125 in Singatron Enterprise Co on August 28, 2024 and sell it today you would earn a total of 60.00 from holding Singatron Enterprise Co or generate 1.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Singatron Enterprise Co vs. Bank of Kaohsiung
Performance |
| Timeline |
| Singatron Enterprise |
| Bank of Kaohsiung |
Singatron Enterprise and Bank of Kaohsiung Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Singatron Enterprise and Bank of Kaohsiung
The main advantage of trading using opposite Singatron Enterprise and Bank of Kaohsiung positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Singatron Enterprise position performs unexpectedly, Bank of Kaohsiung 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 Bank of Kaohsiung will offset losses from the drop in Bank of Kaohsiung's long position.| Singatron Enterprise vs. Advantech Co | Singatron Enterprise vs. IEI Integration Corp | Singatron Enterprise vs. Flytech Technology Co | Singatron Enterprise vs. ADLINK Technology |
| Bank of Kaohsiung vs. Union Bank of | Bank of Kaohsiung vs. Chang Hwa Commercial | Bank of Kaohsiung vs. EnTie Commercial Bank | Bank of Kaohsiung vs. Taiwan Business Bank |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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