Correlation Between Posiflex Technology and Chaheng Precision
Can any of the company-specific risk be diversified away by investing in both Posiflex Technology and Chaheng Precision 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 Posiflex Technology and Chaheng Precision into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Posiflex Technology and Chaheng Precision Co, you can compare the effects of market volatilities on Posiflex Technology and Chaheng Precision 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 Posiflex Technology with a short position of Chaheng Precision. Check out your portfolio center. Please also check ongoing floating volatility patterns of Posiflex Technology and Chaheng Precision.
Diversification Opportunities for Posiflex Technology and Chaheng Precision
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Posiflex and Chaheng is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Posiflex Technology and Chaheng Precision Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chaheng Precision and Posiflex Technology 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 Posiflex Technology are associated (or correlated) with Chaheng Precision. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chaheng Precision has no effect on the direction of Posiflex Technology i.e., Posiflex Technology and Chaheng Precision go up and down completely randomly.
Pair Corralation between Posiflex Technology and Chaheng Precision
If you would invest 0.00 in Chaheng Precision Co on November 7, 2024 and sell it today you would earn a total of 0.00 from holding Chaheng Precision Co or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 6.25% |
| Values | Daily Returns |
Posiflex Technology vs. Chaheng Precision Co
Performance |
| Timeline |
| Posiflex Technology |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
| Chaheng Precision |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Posiflex Technology and Chaheng Precision Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Posiflex Technology and Chaheng Precision
The main advantage of trading using opposite Posiflex Technology and Chaheng Precision positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Posiflex Technology position performs unexpectedly, Chaheng Precision 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 Chaheng Precision will offset losses from the drop in Chaheng Precision's long position.The idea behind Posiflex Technology and Chaheng Precision Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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