Correlation Between Taiwan Weighted and Grape King
Can any of the company-specific risk be diversified away by investing in both Taiwan Weighted and Grape King 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 Taiwan Weighted and Grape King into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Taiwan Weighted and Grape King Bio, you can compare the effects of market volatilities on Taiwan Weighted and Grape King 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 Taiwan Weighted with a short position of Grape King. Check out your portfolio center. Please also check ongoing floating volatility patterns of Taiwan Weighted and Grape King.
Diversification Opportunities for Taiwan Weighted and Grape King
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Taiwan and Grape is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Taiwan Weighted and Grape King Bio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grape King Bio and Taiwan Weighted 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 Taiwan Weighted are associated (or correlated) with Grape King. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grape King Bio has no effect on the direction of Taiwan Weighted i.e., Taiwan Weighted and Grape King go up and down completely randomly.
Pair Corralation between Taiwan Weighted and Grape King
Assuming the 90 days trading horizon Taiwan Weighted is expected to under-perform the Grape King. In addition to that, Taiwan Weighted is 1.09 times more volatile than Grape King Bio. It trades about -0.09 of its total potential returns per unit of risk. Grape King Bio is currently generating about 0.14 per unit of volatility. If you would invest 15,100 in Grape King Bio on August 24, 2024 and sell it today you would earn a total of 400.00 from holding Grape King Bio or generate 2.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Taiwan Weighted vs. Grape King Bio
Performance |
| Timeline |
Taiwan Weighted and Grape King Volatility Contrast
Predicted Return Density |
| Returns |
Taiwan Weighted
Pair trading matchups for Taiwan Weighted
Grape King Bio
Pair trading matchups for Grape King
Pair Trading with Taiwan Weighted and Grape King
The main advantage of trading using opposite Taiwan Weighted and Grape King positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Taiwan Weighted position performs unexpectedly, Grape King 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 Grape King will offset losses from the drop in Grape King's long position.| Taiwan Weighted vs. First Hotel Co | Taiwan Weighted vs. Great China Metal | Taiwan Weighted vs. HOYA Resort Hotel | Taiwan Weighted vs. Kindom Construction Corp |
| Grape King vs. Standard Foods Corp | Grape King vs. Eclat Textile Co | Grape King vs. Feng Tay Enterprises | Grape King vs. China Steel Chemical |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |