Correlation Between Voltronic Power and Bin Chuan
Can any of the company-specific risk be diversified away by investing in both Voltronic Power and Bin Chuan 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 Voltronic Power and Bin Chuan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Voltronic Power Technology and Bin Chuan Enterprise, you can compare the effects of market volatilities on Voltronic Power and Bin Chuan 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 Voltronic Power with a short position of Bin Chuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voltronic Power and Bin Chuan.
Diversification Opportunities for Voltronic Power and Bin Chuan
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Voltronic and Bin is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Voltronic Power Technology and Bin Chuan Enterprise in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bin Chuan Enterprise and Voltronic Power 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 Voltronic Power Technology are associated (or correlated) with Bin Chuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bin Chuan Enterprise has no effect on the direction of Voltronic Power i.e., Voltronic Power and Bin Chuan go up and down completely randomly.
Pair Corralation between Voltronic Power and Bin Chuan
Assuming the 90 days trading horizon Voltronic Power is expected to generate 4.26 times less return on investment than Bin Chuan. But when comparing it to its historical volatility, Voltronic Power Technology is 1.01 times less risky than Bin Chuan. It trades about 0.04 of its potential returns per unit of risk. Bin Chuan Enterprise is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 2,275 in Bin Chuan Enterprise on September 2, 2024 and sell it today you would earn a total of 4,215 from holding Bin Chuan Enterprise or generate 185.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Voltronic Power Technology vs. Bin Chuan Enterprise
Performance |
| Timeline |
| Voltronic Power Tech |
| Bin Chuan Enterprise |
Voltronic Power and Bin Chuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voltronic Power and Bin Chuan
The main advantage of trading using opposite Voltronic Power and Bin Chuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voltronic Power position performs unexpectedly, Bin Chuan 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 Bin Chuan will offset losses from the drop in Bin Chuan's long position.| Voltronic Power vs. Walsin Lihwa Corp | Voltronic Power vs. Advanced Energy Solution | Voltronic Power vs. Simplo Technology Co | Voltronic Power vs. Ta Ya Electric |
| Bin Chuan vs. Posiflex Technology | Bin Chuan vs. Microelectronics Technology | Bin Chuan vs. Voltronic Power Technology | Bin Chuan vs. HOYA Resort Hotel |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |