Correlation Between Ching Feng and Intai Technology
Can any of the company-specific risk be diversified away by investing in both Ching Feng and Intai Technology 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 Intai Technology 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 Intai Technology, you can compare the effects of market volatilities on Ching Feng and Intai Technology 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 Intai Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ching Feng and Intai Technology.
Diversification Opportunities for Ching Feng and Intai Technology
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ching and Intai is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Ching Feng Home and Intai Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intai Technology 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 Intai Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intai Technology has no effect on the direction of Ching Feng i.e., Ching Feng and Intai Technology go up and down completely randomly.
Pair Corralation between Ching Feng and Intai Technology
Assuming the 90 days trading horizon Ching Feng Home is expected to generate 2.41 times more return on investment than Intai Technology. However, Ching Feng is 2.41 times more volatile than Intai Technology. It trades about 0.13 of its potential returns per unit of risk. Intai Technology is currently generating about -0.08 per unit of risk. If you would invest 3,185 in Ching Feng Home on December 1, 2024 and sell it today you would earn a total of 155.00 from holding Ching Feng Home or generate 4.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ching Feng Home vs. Intai Technology
Performance |
| Timeline |
| Ching Feng Home |
| Intai Technology |
Ching Feng and Intai Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ching Feng and Intai Technology
The main advantage of trading using opposite Ching Feng and Intai Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ching Feng position performs unexpectedly, Intai Technology 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 Intai Technology will offset losses from the drop in Intai Technology'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 |
| Intai Technology vs. WT Microelectronics Co | Intai Technology vs. LandMark Optoelectronics | Intai Technology vs. Sea Sonic Electronics | Intai Technology 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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