Correlation Between Chenbro Micom and Nak Sealing
Can any of the company-specific risk be diversified away by investing in both Chenbro Micom and Nak Sealing 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 Chenbro Micom and Nak Sealing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chenbro Micom Co and Nak Sealing Technologies, you can compare the effects of market volatilities on Chenbro Micom and Nak Sealing 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 Chenbro Micom with a short position of Nak Sealing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chenbro Micom and Nak Sealing.
Diversification Opportunities for Chenbro Micom and Nak Sealing
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Chenbro and Nak is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Chenbro Micom Co and Nak Sealing Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nak Sealing Technologies and Chenbro Micom 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 Chenbro Micom Co are associated (or correlated) with Nak Sealing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nak Sealing Technologies has no effect on the direction of Chenbro Micom i.e., Chenbro Micom and Nak Sealing go up and down completely randomly.
Pair Corralation between Chenbro Micom and Nak Sealing
Assuming the 90 days trading horizon Chenbro Micom Co is expected to generate 2.66 times more return on investment than Nak Sealing. However, Chenbro Micom is 2.66 times more volatile than Nak Sealing Technologies. It trades about 0.06 of its potential returns per unit of risk. Nak Sealing Technologies is currently generating about 0.02 per unit of risk. If you would invest 28,700 in Chenbro Micom Co on August 29, 2024 and sell it today you would earn a total of 950.00 from holding Chenbro Micom Co or generate 3.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chenbro Micom Co vs. Nak Sealing Technologies
Performance |
| Timeline |
| Chenbro Micom |
| Nak Sealing Technologies |
Chenbro Micom and Nak Sealing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chenbro Micom and Nak Sealing
The main advantage of trading using opposite Chenbro Micom and Nak Sealing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chenbro Micom position performs unexpectedly, Nak Sealing 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 Nak Sealing will offset losses from the drop in Nak Sealing's long position.| Chenbro Micom vs. Getac Technology Corp | Chenbro Micom vs. ASRock Inc | Chenbro Micom vs. Elite Material Co | Chenbro Micom vs. Topco Scientific Co |
| Nak Sealing vs. CHC Resources Corp | Nak Sealing vs. Taiwan Secom Co | Nak Sealing vs. Taiwan Shin Kong | Nak Sealing vs. Yulon Finance Corp |
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 Stocks Directory module to find actively traded stocks across global markets.
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