Correlation Between Chicony Power and Voltronic Power
Can any of the company-specific risk be diversified away by investing in both Chicony Power and Voltronic Power 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 Voltronic Power 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 Voltronic Power Technology, you can compare the effects of market volatilities on Chicony Power and Voltronic Power 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 Voltronic Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chicony Power and Voltronic Power.
Diversification Opportunities for Chicony Power and Voltronic Power
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Chicony and Voltronic is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Chicony Power Technology and Voltronic Power Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voltronic Power Tech 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 Voltronic Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voltronic Power Tech has no effect on the direction of Chicony Power i.e., Chicony Power and Voltronic Power go up and down completely randomly.
Pair Corralation between Chicony Power and Voltronic Power
Assuming the 90 days trading horizon Chicony Power Technology is expected to generate 1.0 times more return on investment than Voltronic Power. However, Chicony Power Technology is 1.0 times less risky than Voltronic Power. It trades about 0.06 of its potential returns per unit of risk. Voltronic Power Technology is currently generating about 0.02 per unit of risk. If you would invest 7,860 in Chicony Power Technology on August 26, 2024 and sell it today you would earn a total of 4,190 from holding Chicony Power Technology or generate 53.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chicony Power Technology vs. Voltronic Power Technology
Performance |
| Timeline |
| Chicony Power Technology |
| Voltronic Power Tech |
Chicony Power and Voltronic Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chicony Power and Voltronic Power
The main advantage of trading using opposite Chicony Power and Voltronic Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chicony Power position performs unexpectedly, Voltronic Power 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 Voltronic Power will offset losses from the drop in Voltronic Power's long position.| Chicony Power vs. Coretronic | Chicony Power vs. Merry Electronics Co | Chicony Power vs. Sampo Corp | Chicony Power vs. Taiwan Sanyo Electric |
| Voltronic Power vs. Walsin Lihwa Corp | Voltronic Power vs. Simplo Technology Co | Voltronic Power vs. Ta Ya Electric | Voltronic Power vs. Hiwin Mikrosystem 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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