Correlation Between Trade Van and Roo Hsing
Can any of the company-specific risk be diversified away by investing in both Trade Van and Roo Hsing 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 Trade Van and Roo Hsing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Trade Van Information Services and Roo Hsing Co, you can compare the effects of market volatilities on Trade Van and Roo Hsing 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 Trade Van with a short position of Roo Hsing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Trade Van and Roo Hsing.
Diversification Opportunities for Trade Van and Roo Hsing
Very good diversification
The 3 months correlation between Trade and Roo is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Trade Van Information Services and Roo Hsing Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Roo Hsing and Trade Van 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 Trade Van Information Services are associated (or correlated) with Roo Hsing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Roo Hsing has no effect on the direction of Trade Van i.e., Trade Van and Roo Hsing go up and down completely randomly.
Pair Corralation between Trade Van and Roo Hsing
Assuming the 90 days trading horizon Trade Van Information Services is expected to generate 0.33 times more return on investment than Roo Hsing. However, Trade Van Information Services is 3.01 times less risky than Roo Hsing. It trades about 0.1 of its potential returns per unit of risk. Roo Hsing Co is currently generating about 0.02 per unit of risk. If you would invest 5,870 in Trade Van Information Services on September 12, 2024 and sell it today you would earn a total of 2,360 from holding Trade Van Information Services or generate 40.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Trade Van Information Services vs. Roo Hsing Co
Performance |
| Timeline |
| Trade Van Information |
| Roo Hsing |
Trade Van and Roo Hsing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Trade Van and Roo Hsing
The main advantage of trading using opposite Trade Van and Roo Hsing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Trade Van position performs unexpectedly, Roo Hsing 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 Roo Hsing will offset losses from the drop in Roo Hsing's long position.| Trade Van vs. AU Optronics | Trade Van vs. Innolux Corp | Trade Van vs. Ruentex Development Co | Trade Van vs. WiseChip Semiconductor |
| Roo Hsing vs. Standard Chemical Pharmaceutical | Roo Hsing vs. New Asia Construction | Roo Hsing vs. Trade Van Information Services | Roo Hsing vs. Tait Marketing Distribution |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Global Correlations Find global opportunities by holding instruments from different markets |