Correlation Between Pontex Polyblend and Landis Taipei
Can any of the company-specific risk be diversified away by investing in both Pontex Polyblend and Landis Taipei 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 Pontex Polyblend and Landis Taipei into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pontex Polyblend CoLtd and Landis Taipei Hotel, you can compare the effects of market volatilities on Pontex Polyblend and Landis Taipei 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 Pontex Polyblend with a short position of Landis Taipei. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pontex Polyblend and Landis Taipei.
Diversification Opportunities for Pontex Polyblend and Landis Taipei
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Pontex and Landis is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Pontex Polyblend CoLtd and Landis Taipei Hotel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Landis Taipei Hotel and Pontex Polyblend 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 Pontex Polyblend CoLtd are associated (or correlated) with Landis Taipei. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Landis Taipei Hotel has no effect on the direction of Pontex Polyblend i.e., Pontex Polyblend and Landis Taipei go up and down completely randomly.
Pair Corralation between Pontex Polyblend and Landis Taipei
Assuming the 90 days trading horizon Pontex Polyblend CoLtd is expected to generate 1.96 times more return on investment than Landis Taipei. However, Pontex Polyblend is 1.96 times more volatile than Landis Taipei Hotel. It trades about 0.16 of its potential returns per unit of risk. Landis Taipei Hotel is currently generating about -0.01 per unit of risk. If you would invest 2,030 in Pontex Polyblend CoLtd on August 28, 2024 and sell it today you would earn a total of 230.00 from holding Pontex Polyblend CoLtd or generate 11.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pontex Polyblend CoLtd vs. Landis Taipei Hotel
Performance |
| Timeline |
| Pontex Polyblend CoLtd |
| Landis Taipei Hotel |
Pontex Polyblend and Landis Taipei Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pontex Polyblend and Landis Taipei
The main advantage of trading using opposite Pontex Polyblend and Landis Taipei positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pontex Polyblend position performs unexpectedly, Landis Taipei 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 Landis Taipei will offset losses from the drop in Landis Taipei's long position.| Pontex Polyblend vs. Cheng Shin Rubber | Pontex Polyblend vs. Nankang Rubber Tire | Pontex Polyblend vs. USI Corp | Pontex Polyblend vs. Asia Polymer Corp |
| Landis Taipei vs. Formosa International Hotels | Landis Taipei vs. Ambassador Hotel | Landis Taipei vs. FDC International Hotels | Landis Taipei vs. First Hotel 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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