Correlation Between Onyx Healthcare and Chia Yi
Can any of the company-specific risk be diversified away by investing in both Onyx Healthcare and Chia Yi 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 Onyx Healthcare and Chia Yi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Onyx Healthcare and Chia Yi Steel, you can compare the effects of market volatilities on Onyx Healthcare and Chia Yi 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 Onyx Healthcare with a short position of Chia Yi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Onyx Healthcare and Chia Yi.
Diversification Opportunities for Onyx Healthcare and Chia Yi
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Onyx and Chia is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Onyx Healthcare and Chia Yi Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chia Yi Steel and Onyx Healthcare 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 Onyx Healthcare are associated (or correlated) with Chia Yi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chia Yi Steel has no effect on the direction of Onyx Healthcare i.e., Onyx Healthcare and Chia Yi go up and down completely randomly.
Pair Corralation between Onyx Healthcare and Chia Yi
Assuming the 90 days trading horizon Onyx Healthcare is expected to under-perform the Chia Yi. But the stock apears to be less risky and, when comparing its historical volatility, Onyx Healthcare is 2.3 times less risky than Chia Yi. The stock trades about -0.04 of its potential returns per unit of risk. The Chia Yi Steel is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,035 in Chia Yi Steel on September 3, 2024 and sell it today you would earn a total of 85.00 from holding Chia Yi Steel or generate 8.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Onyx Healthcare vs. Chia Yi Steel
Performance |
| Timeline |
| Onyx Healthcare |
| Chia Yi Steel |
Onyx Healthcare and Chia Yi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Onyx Healthcare and Chia Yi
The main advantage of trading using opposite Onyx Healthcare and Chia Yi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Onyx Healthcare position performs unexpectedly, Chia Yi 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 Chia Yi will offset losses from the drop in Chia Yi's long position.| Onyx Healthcare vs. YuantaP shares Taiwan Electronics | Onyx Healthcare vs. YuantaP shares Taiwan Mid Cap | Onyx Healthcare vs. YuantaP shares Taiwan Top | Onyx Healthcare vs. Fubon MSCI Taiwan |
| Chia Yi vs. Catcher Technology Co | Chia Yi vs. Evergreen Steel Corp | Chia Yi vs. China Metal Products | Chia Yi vs. Chernan Metal Industrial |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |