Correlation Between PChome Online and Orient Semiconductor
Can any of the company-specific risk be diversified away by investing in both PChome Online and Orient Semiconductor 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 Orient Semiconductor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PChome Online and Orient Semiconductor Electronics, you can compare the effects of market volatilities on PChome Online and Orient Semiconductor 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 Orient Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of PChome Online and Orient Semiconductor.
Diversification Opportunities for PChome Online and Orient Semiconductor
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between PChome and Orient is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding PChome Online and Orient Semiconductor Electroni in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Orient Semiconductor 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 Orient Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Orient Semiconductor has no effect on the direction of PChome Online i.e., PChome Online and Orient Semiconductor go up and down completely randomly.
Pair Corralation between PChome Online and Orient Semiconductor
Assuming the 90 days trading horizon PChome Online is expected to generate 2.01 times more return on investment than Orient Semiconductor. However, PChome Online is 2.01 times more volatile than Orient Semiconductor Electronics. It trades about 0.0 of its potential returns per unit of risk. Orient Semiconductor Electronics is currently generating about -0.02 per unit of risk. If you would invest 5,410 in PChome Online on September 13, 2024 and sell it today you would lose (120.00) from holding PChome Online or give up 2.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PChome Online vs. Orient Semiconductor Electroni
Performance |
| Timeline |
| PChome Online |
| Orient Semiconductor |
PChome Online and Orient Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PChome Online and Orient Semiconductor
The main advantage of trading using opposite PChome Online and Orient Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PChome Online position performs unexpectedly, Orient Semiconductor 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 Orient Semiconductor will offset losses from the drop in Orient Semiconductor'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 |
| Orient Semiconductor vs. AU Optronics | Orient Semiconductor vs. Innolux Corp | Orient Semiconductor vs. Ruentex Development Co | Orient Semiconductor vs. WiseChip Semiconductor |
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.
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