Correlation Between BenQ Materials and Gloria Material
Can any of the company-specific risk be diversified away by investing in both BenQ Materials and Gloria Material 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 BenQ Materials and Gloria Material into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BenQ Materials Corp and Gloria Material Technology, you can compare the effects of market volatilities on BenQ Materials and Gloria Material 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 BenQ Materials with a short position of Gloria Material. Check out your portfolio center. Please also check ongoing floating volatility patterns of BenQ Materials and Gloria Material.
Diversification Opportunities for BenQ Materials and Gloria Material
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between BenQ and Gloria is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding BenQ Materials Corp and Gloria Material Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gloria Material Tech and BenQ Materials 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 BenQ Materials Corp are associated (or correlated) with Gloria Material. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gloria Material Tech has no effect on the direction of BenQ Materials i.e., BenQ Materials and Gloria Material go up and down completely randomly.
Pair Corralation between BenQ Materials and Gloria Material
Assuming the 90 days trading horizon BenQ Materials Corp is expected to generate 1.16 times more return on investment than Gloria Material. However, BenQ Materials is 1.16 times more volatile than Gloria Material Technology. It trades about 0.0 of its potential returns per unit of risk. Gloria Material Technology is currently generating about -0.02 per unit of risk. If you would invest 3,300 in BenQ Materials Corp on September 3, 2024 and sell it today you would lose (45.00) from holding BenQ Materials Corp or give up 1.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BenQ Materials Corp vs. Gloria Material Technology
Performance |
| Timeline |
| BenQ Materials Corp |
| Gloria Material Tech |
BenQ Materials and Gloria Material Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BenQ Materials and Gloria Material
The main advantage of trading using opposite BenQ Materials and Gloria Material positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BenQ Materials position performs unexpectedly, Gloria Material 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 Gloria Material will offset losses from the drop in Gloria Material's long position.| BenQ Materials vs. Taiwan Semiconductor Manufacturing | BenQ Materials vs. Yang Ming Marine | BenQ Materials vs. ASE Industrial Holding | BenQ Materials vs. AU Optronics |
| Gloria Material vs. Thunder Tiger Corp | Gloria Material vs. Synmosa Biopharma | Gloria Material vs. Oriental Union Chemical | Gloria Material vs. Ruentex Development Co |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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