Correlation Between Feng Tay and Ta Yih
Can any of the company-specific risk be diversified away by investing in both Feng Tay and Ta Yih 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 Feng Tay and Ta Yih into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Feng Tay Enterprises and Ta Yih Industrial, you can compare the effects of market volatilities on Feng Tay and Ta Yih 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 Feng Tay with a short position of Ta Yih. Check out your portfolio center. Please also check ongoing floating volatility patterns of Feng Tay and Ta Yih.
Diversification Opportunities for Feng Tay and Ta Yih
Poor diversification
The 3 months correlation between Feng and 1521 is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Feng Tay Enterprises and Ta Yih Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ta Yih Industrial and Feng Tay 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 Feng Tay Enterprises are associated (or correlated) with Ta Yih. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ta Yih Industrial has no effect on the direction of Feng Tay i.e., Feng Tay and Ta Yih go up and down completely randomly.
Pair Corralation between Feng Tay and Ta Yih
Assuming the 90 days trading horizon Feng Tay Enterprises is expected to under-perform the Ta Yih. In addition to that, Feng Tay is 1.03 times more volatile than Ta Yih Industrial. It trades about -0.04 of its total potential returns per unit of risk. Ta Yih Industrial is currently generating about 0.0 per unit of volatility. If you would invest 3,467 in Ta Yih Industrial on September 13, 2024 and sell it today you would lose (127.00) from holding Ta Yih Industrial or give up 3.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Feng Tay Enterprises vs. Ta Yih Industrial
Performance |
| Timeline |
| Feng Tay Enterprises |
| Ta Yih Industrial |
Feng Tay and Ta Yih Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Feng Tay and Ta Yih
The main advantage of trading using opposite Feng Tay and Ta Yih positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Feng Tay position performs unexpectedly, Ta Yih 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 Ta Yih will offset losses from the drop in Ta Yih's long position.| Feng Tay vs. Pou Chen Corp | Feng Tay vs. Eclat Textile Co | Feng Tay vs. Hotai Motor Co | Feng Tay vs. Giant Manufacturing Co |
| Ta Yih vs. Feng Tay Enterprises | Ta Yih vs. Ruentex Development Co | Ta Yih vs. WiseChip Semiconductor | Ta Yih vs. Novatek Microelectronics 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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