Correlation Between Great Computer and O Bank
Can any of the company-specific risk be diversified away by investing in both Great Computer and O Bank 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 Great Computer and O Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Great Computer and O Bank Co, you can compare the effects of market volatilities on Great Computer and O Bank 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 Great Computer with a short position of O Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Great Computer and O Bank.
Diversification Opportunities for Great Computer and O Bank
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Great and 2897 is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Great Computer and O Bank Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on O Bank and Great Computer 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 Great Computer are associated (or correlated) with O Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of O Bank has no effect on the direction of Great Computer i.e., Great Computer and O Bank go up and down completely randomly.
Pair Corralation between Great Computer and O Bank
Assuming the 90 days trading horizon Great Computer is expected to under-perform the O Bank. In addition to that, Great Computer is 8.15 times more volatile than O Bank Co. It trades about -0.24 of its total potential returns per unit of risk. O Bank Co is currently generating about 0.17 per unit of volatility. If you would invest 977.00 in O Bank Co on October 26, 2024 and sell it today you would earn a total of 16.00 from holding O Bank Co or generate 1.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Great Computer vs. O Bank Co
Performance |
| Timeline |
| Great Computer |
| O Bank |
Great Computer and O Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Great Computer and O Bank
The main advantage of trading using opposite Great Computer and O Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Great Computer position performs unexpectedly, O Bank 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 O Bank will offset losses from the drop in O Bank's long position.| Great Computer vs. Airtac International Group | Great Computer vs. TECO Electric Machinery | Great Computer vs. Chung Hsin Electric Machinery | Great Computer vs. King Slide Works |
| O Bank vs. Taichung Commercial Bank | O Bank vs. Taishin Financial Holding | O Bank vs. Taiwan Business Bank | O Bank vs. Hua Nan Financial |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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