Correlation Between Phoenix Silicon and Tang Eng
Can any of the company-specific risk be diversified away by investing in both Phoenix Silicon and Tang Eng 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 Phoenix Silicon and Tang Eng into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Phoenix Silicon International and Tang Eng Iron, you can compare the effects of market volatilities on Phoenix Silicon and Tang Eng 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 Phoenix Silicon with a short position of Tang Eng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Phoenix Silicon and Tang Eng.
Diversification Opportunities for Phoenix Silicon and Tang Eng
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Phoenix and Tang is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Phoenix Silicon International and Tang Eng Iron in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tang Eng Iron and Phoenix Silicon 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 Phoenix Silicon International are associated (or correlated) with Tang Eng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tang Eng Iron has no effect on the direction of Phoenix Silicon i.e., Phoenix Silicon and Tang Eng go up and down completely randomly.
Pair Corralation between Phoenix Silicon and Tang Eng
Assuming the 90 days trading horizon Phoenix Silicon International is expected to generate 4.92 times more return on investment than Tang Eng. However, Phoenix Silicon is 4.92 times more volatile than Tang Eng Iron. It trades about 0.11 of its potential returns per unit of risk. Tang Eng Iron is currently generating about 0.07 per unit of risk. If you would invest 12,250 in Phoenix Silicon International on August 30, 2024 and sell it today you would earn a total of 1,000.00 from holding Phoenix Silicon International or generate 8.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Phoenix Silicon International vs. Tang Eng Iron
Performance |
| Timeline |
| Phoenix Silicon Inte |
| Tang Eng Iron |
Phoenix Silicon and Tang Eng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Phoenix Silicon and Tang Eng
The main advantage of trading using opposite Phoenix Silicon and Tang Eng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Phoenix Silicon position performs unexpectedly, Tang Eng 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 Tang Eng will offset losses from the drop in Tang Eng's long position.| Phoenix Silicon vs. Taiwan Semiconductor Manufacturing | Phoenix Silicon vs. MediaTek | Phoenix Silicon vs. United Microelectronics | Phoenix Silicon vs. Novatek Microelectronics Corp |
| Tang Eng vs. Formosan Union Chemical | Tang Eng vs. Taita Chemical Co | Tang Eng vs. Phoenix Silicon International | Tang Eng vs. Silicon Power Computer |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |