Correlation Between Great Computer and Tait Marketing
Can any of the company-specific risk be diversified away by investing in both Great Computer and Tait Marketing 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 Tait Marketing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Great Computer and Tait Marketing Distribution, you can compare the effects of market volatilities on Great Computer and Tait Marketing 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 Tait Marketing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Great Computer and Tait Marketing.
Diversification Opportunities for Great Computer and Tait Marketing
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Great and Tait is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Great Computer and Tait Marketing Distribution in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tait Marketing Distr 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 Tait Marketing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tait Marketing Distr has no effect on the direction of Great Computer i.e., Great Computer and Tait Marketing go up and down completely randomly.
Pair Corralation between Great Computer and Tait Marketing
Assuming the 90 days trading horizon Great Computer is expected to generate 32.34 times more return on investment than Tait Marketing. However, Great Computer is 32.34 times more volatile than Tait Marketing Distribution. It trades about 0.04 of its potential returns per unit of risk. Tait Marketing Distribution is currently generating about 0.04 per unit of risk. If you would invest 1,215 in Great Computer on September 13, 2024 and sell it today you would earn a total of 480.00 from holding Great Computer or generate 39.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Great Computer vs. Tait Marketing Distribution
Performance |
| Timeline |
| Great Computer |
| Tait Marketing Distr |
Great Computer and Tait Marketing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Great Computer and Tait Marketing
The main advantage of trading using opposite Great Computer and Tait Marketing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Great Computer position performs unexpectedly, Tait Marketing 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 Tait Marketing will offset losses from the drop in Tait Marketing's long position.| Great Computer vs. TECO Electric Machinery | Great Computer vs. Chung Hsin Electric Machinery | Great Computer vs. Ruentex Development Co | Great Computer vs. Symtek Automation Asia |
| Tait Marketing vs. YuantaP shares Taiwan Electronics | Tait Marketing vs. YuantaP shares Taiwan Top | Tait Marketing vs. Fubon MSCI Taiwan | Tait Marketing vs. YuantaP shares Taiwan Mid Cap |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |