Correlation Between Paiho Shih and Bonny Worldwide
Can any of the company-specific risk be diversified away by investing in both Paiho Shih and Bonny Worldwide 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 Paiho Shih and Bonny Worldwide into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Paiho Shih Holdings and Bonny Worldwide, you can compare the effects of market volatilities on Paiho Shih and Bonny Worldwide 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 Paiho Shih with a short position of Bonny Worldwide. Check out your portfolio center. Please also check ongoing floating volatility patterns of Paiho Shih and Bonny Worldwide.
Diversification Opportunities for Paiho Shih and Bonny Worldwide
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Paiho and Bonny is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Paiho Shih Holdings and Bonny Worldwide in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bonny Worldwide and Paiho Shih 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 Paiho Shih Holdings are associated (or correlated) with Bonny Worldwide. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bonny Worldwide has no effect on the direction of Paiho Shih i.e., Paiho Shih and Bonny Worldwide go up and down completely randomly.
Pair Corralation between Paiho Shih and Bonny Worldwide
Assuming the 90 days trading horizon Paiho Shih Holdings is expected to under-perform the Bonny Worldwide. But the stock apears to be less risky and, when comparing its historical volatility, Paiho Shih Holdings is 1.42 times less risky than Bonny Worldwide. The stock trades about -0.01 of its potential returns per unit of risk. The Bonny Worldwide is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 25,600 in Bonny Worldwide on September 1, 2024 and sell it today you would earn a total of 1,550 from holding Bonny Worldwide or generate 6.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Paiho Shih Holdings vs. Bonny Worldwide
Performance |
| Timeline |
| Paiho Shih Holdings |
| Bonny Worldwide |
Paiho Shih and Bonny Worldwide Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Paiho Shih and Bonny Worldwide
The main advantage of trading using opposite Paiho Shih and Bonny Worldwide positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Paiho Shih position performs unexpectedly, Bonny Worldwide 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 Bonny Worldwide will offset losses from the drop in Bonny Worldwide's long position.| Paiho Shih vs. Chaintech Technology Corp | Paiho Shih vs. AVerMedia Technologies | Paiho Shih vs. Avision | Paiho Shih vs. Clevo Co |
| Bonny Worldwide vs. Paiho Shih Holdings | Bonny Worldwide vs. Thunder Tiger Corp | Bonny Worldwide vs. Feng Tay Enterprises | Bonny Worldwide vs. Sinyi Realty |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Transaction History View history of all your transactions and understand their impact on performance |