Correlation Between Chunghwa Precision and BenQ Medical
Can any of the company-specific risk be diversified away by investing in both Chunghwa Precision and BenQ Medical 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 Chunghwa Precision and BenQ Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chunghwa Precision Test and BenQ Medical Technology, you can compare the effects of market volatilities on Chunghwa Precision and BenQ Medical 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 Chunghwa Precision with a short position of BenQ Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chunghwa Precision and BenQ Medical.
Diversification Opportunities for Chunghwa Precision and BenQ Medical
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Chunghwa and BenQ is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Chunghwa Precision Test and BenQ Medical Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BenQ Medical Technology and Chunghwa Precision 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 Chunghwa Precision Test are associated (or correlated) with BenQ Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BenQ Medical Technology has no effect on the direction of Chunghwa Precision i.e., Chunghwa Precision and BenQ Medical go up and down completely randomly.
Pair Corralation between Chunghwa Precision and BenQ Medical
Assuming the 90 days trading horizon Chunghwa Precision Test is expected to under-perform the BenQ Medical. In addition to that, Chunghwa Precision is 3.47 times more volatile than BenQ Medical Technology. It trades about -0.12 of its total potential returns per unit of risk. BenQ Medical Technology is currently generating about -0.24 per unit of volatility. If you would invest 4,725 in BenQ Medical Technology on October 26, 2024 and sell it today you would lose (220.00) from holding BenQ Medical Technology or give up 4.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chunghwa Precision Test vs. BenQ Medical Technology
Performance |
| Timeline |
| Chunghwa Precision Test |
| BenQ Medical Technology |
Chunghwa Precision and BenQ Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chunghwa Precision and BenQ Medical
The main advantage of trading using opposite Chunghwa Precision and BenQ Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chunghwa Precision position performs unexpectedly, BenQ Medical 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 BenQ Medical will offset losses from the drop in BenQ Medical's long position.| Chunghwa Precision vs. Advantech Co | Chunghwa Precision vs. IEI Integration Corp | Chunghwa Precision vs. Flytech Technology Co | Chunghwa Precision vs. Ennoconn Corp |
| BenQ Medical vs. Sunspring Metal Corp | BenQ Medical vs. AVer Information | BenQ Medical vs. Jentech Precision Industrial | BenQ Medical vs. Transcend Information |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |