Correlation Between Taiwan Weighted and GAME HOURS
Can any of the company-specific risk be diversified away by investing in both Taiwan Weighted and GAME HOURS 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 GAME HOURS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Taiwan Weighted and GAME HOURS, you can compare the effects of market volatilities on Taiwan Weighted and GAME HOURS 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 GAME HOURS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Taiwan Weighted and GAME HOURS.
Diversification Opportunities for Taiwan Weighted and GAME HOURS
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Taiwan and GAME is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Taiwan Weighted and GAME HOURS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GAME HOURS 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 GAME HOURS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GAME HOURS has no effect on the direction of Taiwan Weighted i.e., Taiwan Weighted and GAME HOURS go up and down completely randomly.
Pair Corralation between Taiwan Weighted and GAME HOURS
Assuming the 90 days trading horizon Taiwan Weighted is expected to under-perform the GAME HOURS. But the index apears to be less risky and, when comparing its historical volatility, Taiwan Weighted is 3.3 times less risky than GAME HOURS. The index trades about -0.16 of its potential returns per unit of risk. The GAME HOURS is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 715.00 in GAME HOURS on September 3, 2024 and sell it today you would lose (18.00) from holding GAME HOURS or give up 2.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Taiwan Weighted vs. GAME HOURS
Performance |
| Timeline |
Taiwan Weighted and GAME HOURS Volatility Contrast
Predicted Return Density |
| Returns |
Taiwan Weighted
Pair trading matchups for Taiwan Weighted
GAME HOURS
Pair trading matchups for GAME HOURS
Pair Trading with Taiwan Weighted and GAME HOURS
The main advantage of trading using opposite Taiwan Weighted and GAME HOURS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Taiwan Weighted position performs unexpectedly, GAME HOURS 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 GAME HOURS will offset losses from the drop in GAME HOURS's long position.| Taiwan Weighted vs. Min Aik Technology | Taiwan Weighted vs. CHINA DEVELOPMENT FINANCIAL | Taiwan Weighted vs. Mega Financial Holding | Taiwan Weighted vs. Taishin Financial Holding |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |