Correlation Between Ibase Gaming and Taiwan Takisawa
Can any of the company-specific risk be diversified away by investing in both Ibase Gaming and Taiwan Takisawa 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 Ibase Gaming and Taiwan Takisawa into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ibase Gaming and Taiwan Takisawa Technology, you can compare the effects of market volatilities on Ibase Gaming and Taiwan Takisawa 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 Ibase Gaming with a short position of Taiwan Takisawa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ibase Gaming and Taiwan Takisawa.
Diversification Opportunities for Ibase Gaming and Taiwan Takisawa
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Ibase and Taiwan is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Ibase Gaming and Taiwan Takisawa Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Taiwan Takisawa Tech and Ibase Gaming 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 Ibase Gaming are associated (or correlated) with Taiwan Takisawa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Taiwan Takisawa Tech has no effect on the direction of Ibase Gaming i.e., Ibase Gaming and Taiwan Takisawa go up and down completely randomly.
Pair Corralation between Ibase Gaming and Taiwan Takisawa
Assuming the 90 days trading horizon Ibase Gaming is expected to under-perform the Taiwan Takisawa. But the stock apears to be less risky and, when comparing its historical volatility, Ibase Gaming is 1.28 times less risky than Taiwan Takisawa. The stock trades about -0.04 of its potential returns per unit of risk. The Taiwan Takisawa Technology is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 3,180 in Taiwan Takisawa Technology on September 4, 2024 and sell it today you would earn a total of 5,030 from holding Taiwan Takisawa Technology or generate 158.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ibase Gaming vs. Taiwan Takisawa Technology
Performance |
| Timeline |
| Ibase Gaming |
| Taiwan Takisawa Tech |
Ibase Gaming and Taiwan Takisawa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ibase Gaming and Taiwan Takisawa
The main advantage of trading using opposite Ibase Gaming and Taiwan Takisawa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ibase Gaming position performs unexpectedly, Taiwan Takisawa 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 Taiwan Takisawa will offset losses from the drop in Taiwan Takisawa's long position.| Ibase Gaming vs. Sitronix Technology Corp | Ibase Gaming vs. Kinsus Interconnect Technology | Ibase Gaming vs. WiseChip Semiconductor | Ibase Gaming vs. Novatek Microelectronics Corp |
| Taiwan Takisawa vs. Hon Hai Precision | Taiwan Takisawa vs. Delta Electronics | Taiwan Takisawa vs. LARGAN Precision Co | Taiwan Takisawa vs. AU Optronics |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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