Correlation Between Tong Hsing and Globe Union
Can any of the company-specific risk be diversified away by investing in both Tong Hsing and Globe Union 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 Globe Union 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 Globe Union Industrial, you can compare the effects of market volatilities on Tong Hsing and Globe Union 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 Globe Union. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tong Hsing and Globe Union.
Diversification Opportunities for Tong Hsing and Globe Union
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Tong and Globe is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Tong Hsing Electronic and Globe Union Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Globe Union Industrial 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 Globe Union. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Globe Union Industrial has no effect on the direction of Tong Hsing i.e., Tong Hsing and Globe Union go up and down completely randomly.
Pair Corralation between Tong Hsing and Globe Union
Assuming the 90 days trading horizon Tong Hsing is expected to generate 1.22 times less return on investment than Globe Union. In addition to that, Tong Hsing is 1.14 times more volatile than Globe Union Industrial. It trades about 0.01 of its total potential returns per unit of risk. Globe Union Industrial is currently generating about 0.01 per unit of volatility. If you would invest 1,345 in Globe Union Industrial on October 27, 2024 and sell it today you would earn a total of 45.00 from holding Globe Union Industrial or generate 3.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tong Hsing Electronic vs. Globe Union Industrial
Performance |
| Timeline |
| Tong Hsing Electronic |
| Globe Union Industrial |
Tong Hsing and Globe Union Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tong Hsing and Globe Union
The main advantage of trading using opposite Tong Hsing and Globe Union positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tong Hsing position performs unexpectedly, Globe Union 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 Globe Union will offset losses from the drop in Globe Union's long position.| Tong Hsing vs. Unimicron Technology Corp | Tong Hsing vs. Kinsus Interconnect Technology | Tong Hsing vs. Novatek Microelectronics Corp | Tong Hsing vs. Delta Electronics |
| Globe Union vs. Taiwan Hon Chuan | Globe Union vs. Feng Tay Enterprises | Globe Union vs. Taiwan Fu Hsing | Globe Union vs. Basso Industry Corp |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |