Correlation Between Tong Hsing and Yem Chio
Can any of the company-specific risk be diversified away by investing in both Tong Hsing and Yem Chio 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 Yem Chio 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 Yem Chio Co, you can compare the effects of market volatilities on Tong Hsing and Yem Chio 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 Yem Chio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tong Hsing and Yem Chio.
Diversification Opportunities for Tong Hsing and Yem Chio
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Tong and Yem is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Tong Hsing Electronic and Yem Chio Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yem Chio 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 Yem Chio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yem Chio has no effect on the direction of Tong Hsing i.e., Tong Hsing and Yem Chio go up and down completely randomly.
Pair Corralation between Tong Hsing and Yem Chio
Assuming the 90 days trading horizon Tong Hsing Electronic is expected to under-perform the Yem Chio. In addition to that, Tong Hsing is 2.32 times more volatile than Yem Chio Co. It trades about -0.18 of its total potential returns per unit of risk. Yem Chio Co is currently generating about -0.16 per unit of volatility. If you would invest 1,705 in Yem Chio Co on October 14, 2024 and sell it today you would lose (50.00) from holding Yem Chio Co or give up 2.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tong Hsing Electronic vs. Yem Chio Co
Performance |
| Timeline |
| Tong Hsing Electronic |
| Yem Chio |
Tong Hsing and Yem Chio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tong Hsing and Yem Chio
The main advantage of trading using opposite Tong Hsing and Yem Chio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tong Hsing position performs unexpectedly, Yem Chio 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 Yem Chio will offset losses from the drop in Yem Chio'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 |
| Yem Chio vs. Hota Industrial Mfg | Yem Chio vs. Sinbon Electronics Co | Yem Chio vs. Tong Hsing Electronic | Yem Chio vs. Flexium Interconnect |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |