Correlation Between Chunghwa Telecom and PICKN PAY
Can any of the company-specific risk be diversified away by investing in both Chunghwa Telecom and PICKN PAY 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 Chunghwa Telecom and PICKN PAY into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chunghwa Telecom Co and PICKN PAY STORES, you can compare the effects of market volatilities on Chunghwa Telecom and PICKN PAY 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 Chunghwa Telecom with a short position of PICKN PAY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chunghwa Telecom and PICKN PAY.
Diversification Opportunities for Chunghwa Telecom and PICKN PAY
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Chunghwa and PICKN is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Chunghwa Telecom Co and PICKN PAY STORES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PICKN PAY STORES and Chunghwa Telecom 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 Chunghwa Telecom Co are associated (or correlated) with PICKN PAY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PICKN PAY STORES has no effect on the direction of Chunghwa Telecom i.e., Chunghwa Telecom and PICKN PAY go up and down completely randomly.
Pair Corralation between Chunghwa Telecom and PICKN PAY
Assuming the 90 days trading horizon Chunghwa Telecom Co is expected to generate 0.27 times more return on investment than PICKN PAY. However, Chunghwa Telecom Co is 3.64 times less risky than PICKN PAY. It trades about 0.04 of its potential returns per unit of risk. PICKN PAY STORES is currently generating about -0.03 per unit of risk. If you would invest 3,089 in Chunghwa Telecom Co on August 30, 2024 and sell it today you would earn a total of 511.00 from holding Chunghwa Telecom Co or generate 16.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chunghwa Telecom Co vs. PICKN PAY STORES
Performance |
| Timeline |
| Chunghwa Telecom |
| PICKN PAY STORES |
Chunghwa Telecom and PICKN PAY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chunghwa Telecom and PICKN PAY
The main advantage of trading using opposite Chunghwa Telecom and PICKN PAY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chunghwa Telecom position performs unexpectedly, PICKN PAY 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 PICKN PAY will offset losses from the drop in PICKN PAY's long position.| Chunghwa Telecom vs. INDO RAMA SYNTHETIC | Chunghwa Telecom vs. NISSAN CHEMICAL IND | Chunghwa Telecom vs. FANDIFI TECHNOLOGY P | Chunghwa Telecom vs. PTT Global Chemical |
| PICKN PAY vs. Apple Inc | PICKN PAY vs. Apple Inc | PICKN PAY vs. Superior Plus Corp | PICKN PAY vs. SIVERS SEMICONDUCTORS AB |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |