Correlation Between Chicony Power and C Media
Can any of the company-specific risk be diversified away by investing in both Chicony Power and C Media 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 C Media 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 C Media Electronics, you can compare the effects of market volatilities on Chicony Power and C Media 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 C Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chicony Power and C Media.
Diversification Opportunities for Chicony Power and C Media
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Chicony and 6237 is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Chicony Power Technology and C Media Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on C Media Electronics 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 C Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of C Media Electronics has no effect on the direction of Chicony Power i.e., Chicony Power and C Media go up and down completely randomly.
Pair Corralation between Chicony Power and C Media
Assuming the 90 days trading horizon Chicony Power Technology is expected to generate 0.89 times more return on investment than C Media. However, Chicony Power Technology is 1.12 times less risky than C Media. It trades about 0.06 of its potential returns per unit of risk. C Media Electronics is currently generating about 0.02 per unit of risk. If you would invest 7,270 in Chicony Power Technology on September 12, 2024 and sell it today you would earn a total of 5,180 from holding Chicony Power Technology or generate 71.25% 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. C Media Electronics
Performance |
| Timeline |
| Chicony Power Technology |
| C Media Electronics |
Chicony Power and C Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chicony Power and C Media
The main advantage of trading using opposite Chicony Power and C Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chicony Power position performs unexpectedly, C Media 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 C Media will offset losses from the drop in C Media's long position.| Chicony Power vs. Coretronic | Chicony Power vs. Ruentex Development Co | Chicony Power vs. Symtek Automation Asia | Chicony Power vs. WiseChip Semiconductor |
| C Media vs. WIN Semiconductors | C Media vs. GlobalWafers Co | C Media vs. Novatek Microelectronics Corp | C Media vs. Ruentex Development 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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