Correlation Between Ching Feng and Genovate Biotechnology
Can any of the company-specific risk be diversified away by investing in both Ching Feng and Genovate Biotechnology 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 Ching Feng and Genovate Biotechnology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ching Feng Home and Genovate Biotechnology Co, you can compare the effects of market volatilities on Ching Feng and Genovate Biotechnology 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 Ching Feng with a short position of Genovate Biotechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ching Feng and Genovate Biotechnology.
Diversification Opportunities for Ching Feng and Genovate Biotechnology
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Ching and Genovate is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Ching Feng Home and Genovate Biotechnology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genovate Biotechnology and Ching Feng 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 Ching Feng Home are associated (or correlated) with Genovate Biotechnology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genovate Biotechnology has no effect on the direction of Ching Feng i.e., Ching Feng and Genovate Biotechnology go up and down completely randomly.
Pair Corralation between Ching Feng and Genovate Biotechnology
Assuming the 90 days trading horizon Ching Feng Home is expected to generate 1.67 times more return on investment than Genovate Biotechnology. However, Ching Feng is 1.67 times more volatile than Genovate Biotechnology Co. It trades about 0.04 of its potential returns per unit of risk. Genovate Biotechnology Co is currently generating about 0.04 per unit of risk. If you would invest 2,705 in Ching Feng Home on October 26, 2024 and sell it today you would earn a total of 250.00 from holding Ching Feng Home or generate 9.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ching Feng Home vs. Genovate Biotechnology Co
Performance |
| Timeline |
| Ching Feng Home |
| Genovate Biotechnology |
Ching Feng and Genovate Biotechnology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ching Feng and Genovate Biotechnology
The main advantage of trading using opposite Ching Feng and Genovate Biotechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ching Feng position performs unexpectedly, Genovate Biotechnology 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 Genovate Biotechnology will offset losses from the drop in Genovate Biotechnology's long position.| Ching Feng vs. Globe Union Industrial | Ching Feng vs. Taiwan Fu Hsing | Ching Feng vs. Taiwan Hon Chuan | Ching Feng vs. Feng Tay Enterprises |
| Genovate Biotechnology vs. Ching Feng Home | Genovate Biotechnology vs. RiTdisplay Corp | Genovate Biotechnology vs. Winstek Semiconductor Co | Genovate Biotechnology vs. Taiwan Semiconductor 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |