Correlation Between Phoenix Silicon and Shieh Yih
Can any of the company-specific risk be diversified away by investing in both Phoenix Silicon and Shieh Yih 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 Shieh Yih 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 Shieh Yih Machinery, you can compare the effects of market volatilities on Phoenix Silicon and Shieh Yih 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 Shieh Yih. Check out your portfolio center. Please also check ongoing floating volatility patterns of Phoenix Silicon and Shieh Yih.
Diversification Opportunities for Phoenix Silicon and Shieh Yih
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Phoenix and Shieh is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Phoenix Silicon International and Shieh Yih Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shieh Yih Machinery 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 Shieh Yih. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shieh Yih Machinery has no effect on the direction of Phoenix Silicon i.e., Phoenix Silicon and Shieh Yih go up and down completely randomly.
Pair Corralation between Phoenix Silicon and Shieh Yih
Assuming the 90 days trading horizon Phoenix Silicon International is expected to generate 0.8 times more return on investment than Shieh Yih. However, Phoenix Silicon International is 1.25 times less risky than Shieh Yih. It trades about 0.1 of its potential returns per unit of risk. Shieh Yih Machinery is currently generating about 0.04 per unit of risk. If you would invest 5,805 in Phoenix Silicon International on August 28, 2024 and sell it today you would earn a total of 8,445 from holding Phoenix Silicon International or generate 145.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Phoenix Silicon International vs. Shieh Yih Machinery
Performance |
| Timeline |
| Phoenix Silicon Inte |
| Shieh Yih Machinery |
Phoenix Silicon and Shieh Yih Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Phoenix Silicon and Shieh Yih
The main advantage of trading using opposite Phoenix Silicon and Shieh Yih positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Phoenix Silicon position performs unexpectedly, Shieh Yih 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 Shieh Yih will offset losses from the drop in Shieh Yih's long position.| Phoenix Silicon vs. Scientech Corp | Phoenix Silicon vs. Sitronix Technology Corp | Phoenix Silicon vs. Kinsus Interconnect Technology | Phoenix Silicon vs. Andes Technology Corp |
| Shieh Yih vs. Sunny Friend Environmental | Shieh Yih vs. TTET Union Corp | Shieh Yih vs. ECOVE Environment Corp | Shieh Yih vs. Yulon Finance 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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