Correlation Between Himax Technologies and Chunghwa Telecom
Can any of the company-specific risk be diversified away by investing in both Himax Technologies and Chunghwa Telecom 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 Himax Technologies and Chunghwa Telecom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Himax Technologies and Chunghwa Telecom Co, you can compare the effects of market volatilities on Himax Technologies and Chunghwa Telecom 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 Himax Technologies with a short position of Chunghwa Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Himax Technologies and Chunghwa Telecom.
Diversification Opportunities for Himax Technologies and Chunghwa Telecom
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Himax and Chunghwa is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Himax Technologies and Chunghwa Telecom Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chunghwa Telecom and Himax Technologies 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 Himax Technologies are associated (or correlated) with Chunghwa Telecom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chunghwa Telecom has no effect on the direction of Himax Technologies i.e., Himax Technologies and Chunghwa Telecom go up and down completely randomly.
Pair Corralation between Himax Technologies and Chunghwa Telecom
Given the investment horizon of 90 days Himax Technologies is expected to under-perform the Chunghwa Telecom. In addition to that, Himax Technologies is 1.86 times more volatile than Chunghwa Telecom Co. It trades about -0.3 of its total potential returns per unit of risk. Chunghwa Telecom Co is currently generating about 0.06 per unit of volatility. If you would invest 3,790 in Chunghwa Telecom Co on August 28, 2024 and sell it today you would earn a total of 52.00 from holding Chunghwa Telecom Co or generate 1.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Himax Technologies vs. Chunghwa Telecom Co
Performance |
| Timeline |
| Himax Technologies |
| Chunghwa Telecom |
Himax Technologies and Chunghwa Telecom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Himax Technologies and Chunghwa Telecom
The main advantage of trading using opposite Himax Technologies and Chunghwa Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Himax Technologies position performs unexpectedly, Chunghwa Telecom 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 Chunghwa Telecom will offset losses from the drop in Chunghwa Telecom's long position.| Himax Technologies vs. ASE Industrial Holding | Himax Technologies vs. United Microelectronics | Himax Technologies vs. MaxLinear | Himax Technologies vs. SemiLEDS |
| Chunghwa Telecom vs. Grupo Televisa SAB | Chunghwa Telecom vs. Orange SA ADR | Chunghwa Telecom vs. Telefonica Brasil SA | Chunghwa Telecom vs. Telefonica SA ADR |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |