Correlation Between Chicony Power and I Sheng
Can any of the company-specific risk be diversified away by investing in both Chicony Power and I Sheng 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 Chicony Power and I Sheng into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chicony Power Technology and I Sheng Electric Wire, you can compare the effects of market volatilities on Chicony Power and I Sheng 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 Chicony Power with a short position of I Sheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chicony Power and I Sheng.
Diversification Opportunities for Chicony Power and I Sheng
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Chicony and 6115 is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Chicony Power Technology and I Sheng Electric Wire in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on I Sheng Electric and Chicony 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 Chicony Power Technology are associated (or correlated) with I Sheng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of I Sheng Electric has no effect on the direction of Chicony Power i.e., Chicony Power and I Sheng go up and down completely randomly.
Pair Corralation between Chicony Power and I Sheng
Assuming the 90 days trading horizon Chicony Power Technology is expected to generate 2.98 times more return on investment than I Sheng. However, Chicony Power is 2.98 times more volatile than I Sheng Electric Wire. It trades about 0.19 of its potential returns per unit of risk. I Sheng Electric Wire is currently generating about -0.1 per unit of risk. If you would invest 11,850 in Chicony Power Technology on October 23, 2024 and sell it today you would earn a total of 650.00 from holding Chicony Power Technology or generate 5.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chicony Power Technology vs. I Sheng Electric Wire
Performance |
| Timeline |
| Chicony Power Technology |
| I Sheng Electric |
Chicony Power and I Sheng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chicony Power and I Sheng
The main advantage of trading using opposite Chicony Power and I Sheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chicony Power position performs unexpectedly, I Sheng 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 I Sheng will offset losses from the drop in I Sheng's long position.| Chicony Power vs. Jetwell Computer Co | Chicony Power vs. Unitech Computer Co | Chicony Power vs. Sea Sonic Electronics | Chicony Power vs. WinMate Communication INC |
| I Sheng vs. Microelectronics Technology | I Sheng vs. United Radiant Technology | I Sheng vs. Chicony Power Technology | I Sheng vs. Energenesis Biomedical Co |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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