Correlation Between PChome Online and Sheng Yu
Can any of the company-specific risk be diversified away by investing in both PChome Online and Sheng Yu 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 PChome Online and Sheng Yu into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PChome Online and Sheng Yu Steel, you can compare the effects of market volatilities on PChome Online and Sheng Yu 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 PChome Online with a short position of Sheng Yu. Check out your portfolio center. Please also check ongoing floating volatility patterns of PChome Online and Sheng Yu.
Diversification Opportunities for PChome Online and Sheng Yu
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between PChome and Sheng is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding PChome Online and Sheng Yu Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sheng Yu Steel and PChome Online 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 PChome Online are associated (or correlated) with Sheng Yu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sheng Yu Steel has no effect on the direction of PChome Online i.e., PChome Online and Sheng Yu go up and down completely randomly.
Pair Corralation between PChome Online and Sheng Yu
Assuming the 90 days trading horizon PChome Online is expected to generate 6.7 times more return on investment than Sheng Yu. However, PChome Online is 6.7 times more volatile than Sheng Yu Steel. It trades about 0.08 of its potential returns per unit of risk. Sheng Yu Steel is currently generating about -0.29 per unit of risk. If you would invest 4,855 in PChome Online on September 1, 2024 and sell it today you would earn a total of 345.00 from holding PChome Online or generate 7.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PChome Online vs. Sheng Yu Steel
Performance |
| Timeline |
| PChome Online |
| Sheng Yu Steel |
PChome Online and Sheng Yu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PChome Online and Sheng Yu
The main advantage of trading using opposite PChome Online and Sheng Yu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PChome Online position performs unexpectedly, Sheng Yu 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 Sheng Yu will offset losses from the drop in Sheng Yu's long position.| PChome Online vs. momo Inc | PChome Online vs. President Chain Store | PChome Online vs. Uni President Enterprises Corp | PChome Online vs. Taiwan FamilyMart Co |
| Sheng Yu vs. Yieh Phui Enterprise | Sheng Yu vs. Tung Ho Steel | Sheng Yu vs. Feng Hsin Steel | Sheng Yu vs. Chung Hung Steel |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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