Correlation Between Thye Ming and International Games
Can any of the company-specific risk be diversified away by investing in both Thye Ming and International Games 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 Thye Ming and International Games into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thye Ming Industrial and International Games System, you can compare the effects of market volatilities on Thye Ming and International Games 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 Thye Ming with a short position of International Games. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thye Ming and International Games.
Diversification Opportunities for Thye Ming and International Games
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Thye and International is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Thye Ming Industrial and International Games System in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Games and Thye Ming 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 Thye Ming Industrial are associated (or correlated) with International Games. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Games has no effect on the direction of Thye Ming i.e., Thye Ming and International Games go up and down completely randomly.
Pair Corralation between Thye Ming and International Games
Assuming the 90 days trading horizon Thye Ming Industrial is expected to generate 0.41 times more return on investment than International Games. However, Thye Ming Industrial is 2.42 times less risky than International Games. It trades about -0.03 of its potential returns per unit of risk. International Games System is currently generating about -0.09 per unit of risk. If you would invest 6,740 in Thye Ming Industrial on October 26, 2024 and sell it today you would lose (130.00) from holding Thye Ming Industrial or give up 1.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thye Ming Industrial vs. International Games System
Performance |
| Timeline |
| Thye Ming Industrial |
| International Games |
Thye Ming and International Games Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thye Ming and International Games
The main advantage of trading using opposite Thye Ming and International Games positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thye Ming position performs unexpectedly, International Games 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 International Games will offset losses from the drop in International Games' long position.| Thye Ming vs. CHC Resources Corp | Thye Ming vs. Taiwan Shin Kong | Thye Ming vs. Taiwan Secom Co | Thye Ming vs. Nak Sealing Technologies |
| International Games vs. BRIM Biotechnology | International Games vs. Apex Biotechnology Corp | International Games vs. Universal Vision Biotechnology | International Games vs. Phytohealth 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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