Correlation Between Ton Yi and First Copper
Can any of the company-specific risk be diversified away by investing in both Ton Yi and First Copper 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 Ton Yi and First Copper into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ton Yi Industrial and First Copper Technology, you can compare the effects of market volatilities on Ton Yi and First Copper 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 Ton Yi with a short position of First Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ton Yi and First Copper.
Diversification Opportunities for Ton Yi and First Copper
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ton and First is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Ton Yi Industrial and First Copper Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Copper Technology and Ton Yi 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 Ton Yi Industrial are associated (or correlated) with First Copper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Copper Technology has no effect on the direction of Ton Yi i.e., Ton Yi and First Copper go up and down completely randomly.
Pair Corralation between Ton Yi and First Copper
Assuming the 90 days trading horizon Ton Yi Industrial is expected to generate 0.65 times more return on investment than First Copper. However, Ton Yi Industrial is 1.53 times less risky than First Copper. It trades about 0.04 of its potential returns per unit of risk. First Copper Technology is currently generating about -0.08 per unit of risk. If you would invest 1,475 in Ton Yi Industrial on September 1, 2024 and sell it today you would earn a total of 90.00 from holding Ton Yi Industrial or generate 6.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ton Yi Industrial vs. First Copper Technology
Performance |
| Timeline |
| Ton Yi Industrial |
| First Copper Technology |
Ton Yi and First Copper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ton Yi and First Copper
The main advantage of trading using opposite Ton Yi and First Copper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ton Yi position performs unexpectedly, First Copper 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 First Copper will offset losses from the drop in First Copper's long position.| Ton Yi vs. Far Eastern Department | Ton Yi vs. Chang Hwa Commercial | Ton Yi vs. Zinwell | Ton Yi vs. Evergreen International Storage |
| First Copper vs. Basso Industry Corp | First Copper vs. Chung Hsin Electric Machinery | First Copper vs. TYC Brother Industrial | First Copper vs. TECO Electric Machinery |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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