Correlation Between Tsang Yow and Fu Burg
Can any of the company-specific risk be diversified away by investing in both Tsang Yow and Fu Burg 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 Tsang Yow and Fu Burg into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tsang Yow Industrial and Fu Burg Industrial, you can compare the effects of market volatilities on Tsang Yow and Fu Burg 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 Tsang Yow with a short position of Fu Burg. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tsang Yow and Fu Burg.
Diversification Opportunities for Tsang Yow and Fu Burg
Good diversification
The 3 months correlation between Tsang and 8929 is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Tsang Yow Industrial and Fu Burg Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fu Burg Industrial and Tsang Yow 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 Tsang Yow Industrial are associated (or correlated) with Fu Burg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fu Burg Industrial has no effect on the direction of Tsang Yow i.e., Tsang Yow and Fu Burg go up and down completely randomly.
Pair Corralation between Tsang Yow and Fu Burg
Assuming the 90 days trading horizon Tsang Yow Industrial is expected to generate 0.65 times more return on investment than Fu Burg. However, Tsang Yow Industrial is 1.54 times less risky than Fu Burg. It trades about -0.08 of its potential returns per unit of risk. Fu Burg Industrial is currently generating about -0.21 per unit of risk. If you would invest 2,700 in Tsang Yow Industrial on October 20, 2024 and sell it today you would lose (60.00) from holding Tsang Yow Industrial or give up 2.22% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Tsang Yow Industrial vs. Fu Burg Industrial
Performance |
Timeline |
Tsang Yow Industrial |
Fu Burg Industrial |
Tsang Yow and Fu Burg Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Tsang Yow and Fu Burg
The main advantage of trading using opposite Tsang Yow and Fu Burg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tsang Yow position performs unexpectedly, Fu Burg 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 Fu Burg will offset losses from the drop in Fu Burg's long position.Tsang Yow vs. Hota Industrial Mfg | Tsang Yow vs. BizLink Holding | Tsang Yow vs. Tong Hsing Electronic | Tsang Yow vs. Sinbon Electronics Co |
Fu Burg vs. Advanced Wireless Semiconductor | Fu Burg vs. Hotel Holiday Garden | Fu Burg vs. PlayNitride | Fu Burg vs. Grand Ocean Retail |
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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