Correlation Between Taiwan Takisawa and Ibase Gaming
Can any of the company-specific risk be diversified away by investing in both Taiwan Takisawa and Ibase Gaming 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 Taiwan Takisawa and Ibase Gaming into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Taiwan Takisawa Technology and Ibase Gaming, you can compare the effects of market volatilities on Taiwan Takisawa and Ibase Gaming 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 Taiwan Takisawa with a short position of Ibase Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Taiwan Takisawa and Ibase Gaming.
Diversification Opportunities for Taiwan Takisawa and Ibase Gaming
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Taiwan and Ibase is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Taiwan Takisawa Technology and Ibase Gaming in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ibase Gaming and Taiwan Takisawa 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 Taiwan Takisawa Technology are associated (or correlated) with Ibase Gaming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ibase Gaming has no effect on the direction of Taiwan Takisawa i.e., Taiwan Takisawa and Ibase Gaming go up and down completely randomly.
Pair Corralation between Taiwan Takisawa and Ibase Gaming
Assuming the 90 days trading horizon Taiwan Takisawa Technology is expected to under-perform the Ibase Gaming. In addition to that, Taiwan Takisawa is 1.84 times more volatile than Ibase Gaming. It trades about -0.26 of its total potential returns per unit of risk. Ibase Gaming is currently generating about -0.18 per unit of volatility. If you would invest 4,370 in Ibase Gaming on September 4, 2024 and sell it today you would lose (420.00) from holding Ibase Gaming or give up 9.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Taiwan Takisawa Technology vs. Ibase Gaming
Performance |
| Timeline |
| Taiwan Takisawa Tech |
| Ibase Gaming |
Taiwan Takisawa and Ibase Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Taiwan Takisawa and Ibase Gaming
The main advantage of trading using opposite Taiwan Takisawa and Ibase Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Taiwan Takisawa position performs unexpectedly, Ibase Gaming 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 Ibase Gaming will offset losses from the drop in Ibase Gaming's long position.| Taiwan Takisawa vs. Hon Hai Precision | Taiwan Takisawa vs. Delta Electronics | Taiwan Takisawa vs. LARGAN Precision Co | Taiwan Takisawa vs. AU Optronics |
| Ibase Gaming vs. Sitronix Technology Corp | Ibase Gaming vs. Kinsus Interconnect Technology | Ibase Gaming vs. WiseChip Semiconductor | Ibase Gaming vs. Novatek Microelectronics 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 CEOs Directory module to screen CEOs from public companies around the world.
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