Correlation Between Tong Hsing and Global Unichip
Can any of the company-specific risk be diversified away by investing in both Tong Hsing and Global Unichip 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 Tong Hsing and Global Unichip into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tong Hsing Electronic and Global Unichip Corp, you can compare the effects of market volatilities on Tong Hsing and Global Unichip 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 Tong Hsing with a short position of Global Unichip. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tong Hsing and Global Unichip.
Diversification Opportunities for Tong Hsing and Global Unichip
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Tong and Global is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Tong Hsing Electronic and Global Unichip Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Unichip Corp and Tong Hsing 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 Tong Hsing Electronic are associated (or correlated) with Global Unichip. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Unichip Corp has no effect on the direction of Tong Hsing i.e., Tong Hsing and Global Unichip go up and down completely randomly.
Pair Corralation between Tong Hsing and Global Unichip
Assuming the 90 days trading horizon Tong Hsing Electronic is expected to generate 0.62 times more return on investment than Global Unichip. However, Tong Hsing Electronic is 1.62 times less risky than Global Unichip. It trades about 0.05 of its potential returns per unit of risk. Global Unichip Corp is currently generating about 0.03 per unit of risk. If you would invest 12,700 in Tong Hsing Electronic on September 2, 2024 and sell it today you would earn a total of 200.00 from holding Tong Hsing Electronic or generate 1.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tong Hsing Electronic vs. Global Unichip Corp
Performance |
| Timeline |
| Tong Hsing Electronic |
| Global Unichip Corp |
Tong Hsing and Global Unichip Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tong Hsing and Global Unichip
The main advantage of trading using opposite Tong Hsing and Global Unichip positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tong Hsing position performs unexpectedly, Global Unichip 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 Global Unichip will offset losses from the drop in Global Unichip's long position.| Tong Hsing vs. Kinsus Interconnect Technology | Tong Hsing vs. Unimicron Technology Corp | Tong Hsing vs. Nan Ya Printed | Tong Hsing vs. WIN Semiconductors |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| 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 | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |