Correlation Between Ennoconn Corp and Feng Ching
Can any of the company-specific risk be diversified away by investing in both Ennoconn Corp and Feng Ching 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 Ennoconn Corp and Feng Ching into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ennoconn Corp and Feng Ching Metal, you can compare the effects of market volatilities on Ennoconn Corp and Feng Ching 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 Ennoconn Corp with a short position of Feng Ching. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ennoconn Corp and Feng Ching.
Diversification Opportunities for Ennoconn Corp and Feng Ching
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ennoconn and Feng is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Ennoconn Corp and Feng Ching Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Feng Ching Metal and Ennoconn Corp 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 Ennoconn Corp are associated (or correlated) with Feng Ching. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Feng Ching Metal has no effect on the direction of Ennoconn Corp i.e., Ennoconn Corp and Feng Ching go up and down completely randomly.
Pair Corralation between Ennoconn Corp and Feng Ching
Assuming the 90 days trading horizon Ennoconn Corp is expected to generate 0.75 times more return on investment than Feng Ching. However, Ennoconn Corp is 1.33 times less risky than Feng Ching. It trades about 0.01 of its potential returns per unit of risk. Feng Ching Metal is currently generating about -0.25 per unit of risk. If you would invest 30,800 in Ennoconn Corp on August 24, 2024 and sell it today you would earn a total of 50.00 from holding Ennoconn Corp or generate 0.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ennoconn Corp vs. Feng Ching Metal
Performance |
| Timeline |
| Ennoconn Corp |
| Feng Ching Metal |
Ennoconn Corp and Feng Ching Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ennoconn Corp and Feng Ching
The main advantage of trading using opposite Ennoconn Corp and Feng Ching positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ennoconn Corp position performs unexpectedly, Feng Ching 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 Feng Ching will offset losses from the drop in Feng Ching's long position.| Ennoconn Corp vs. Advantech Co | Ennoconn Corp vs. Zhen Ding Technology | Ennoconn Corp vs. General Interface Solution | Ennoconn Corp vs. Hiwin Technologies Corp |
| Feng Ching vs. Walsin Lihwa Corp | Feng Ching vs. Voltronic Power Technology | Feng Ching vs. Advanced Energy Solution | Feng Ching vs. Simplo Technology 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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