Correlation Between PChome Online and Tainet Communication
Can any of the company-specific risk be diversified away by investing in both PChome Online and Tainet Communication 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 Tainet Communication into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PChome Online and Tainet Communication System, you can compare the effects of market volatilities on PChome Online and Tainet Communication 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 Tainet Communication. Check out your portfolio center. Please also check ongoing floating volatility patterns of PChome Online and Tainet Communication.
Diversification Opportunities for PChome Online and Tainet Communication
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between PChome and Tainet is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding PChome Online and Tainet Communication System in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tainet Communication 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 Tainet Communication. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tainet Communication has no effect on the direction of PChome Online i.e., PChome Online and Tainet Communication go up and down completely randomly.
Pair Corralation between PChome Online and Tainet Communication
Assuming the 90 days trading horizon PChome Online is expected to under-perform the Tainet Communication. In addition to that, PChome Online is 1.55 times more volatile than Tainet Communication System. It trades about -0.04 of its total potential returns per unit of risk. Tainet Communication System is currently generating about -0.06 per unit of volatility. If you would invest 7,950 in Tainet Communication System on November 1, 2024 and sell it today you would lose (150.00) from holding Tainet Communication System or give up 1.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PChome Online vs. Tainet Communication System
Performance |
| Timeline |
| PChome Online |
| Tainet Communication |
PChome Online and Tainet Communication Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PChome Online and Tainet Communication
The main advantage of trading using opposite PChome Online and Tainet Communication positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PChome Online position performs unexpectedly, Tainet Communication 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 Tainet Communication will offset losses from the drop in Tainet Communication'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 |
| Tainet Communication vs. Thinking Electronic Industrial | Tainet Communication vs. SuperAlloy Industrial Co, | Tainet Communication vs. Genovate Biotechnology Co | Tainet Communication vs. PChome Online |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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