Correlation Between Chin Poon and Compeq Manufacturing
Can any of the company-specific risk be diversified away by investing in both Chin Poon and Compeq Manufacturing 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 Chin Poon and Compeq Manufacturing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chin Poon Industrial Co and Compeq Manufacturing Co, you can compare the effects of market volatilities on Chin Poon and Compeq Manufacturing 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 Chin Poon with a short position of Compeq Manufacturing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chin Poon and Compeq Manufacturing.
Diversification Opportunities for Chin Poon and Compeq Manufacturing
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Chin and Compeq is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Chin Poon Industrial Co and Compeq Manufacturing Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Compeq Manufacturing and Chin Poon 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 Chin Poon Industrial Co are associated (or correlated) with Compeq Manufacturing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Compeq Manufacturing has no effect on the direction of Chin Poon i.e., Chin Poon and Compeq Manufacturing go up and down completely randomly.
Pair Corralation between Chin Poon and Compeq Manufacturing
Assuming the 90 days trading horizon Chin Poon Industrial Co is expected to under-perform the Compeq Manufacturing. But the stock apears to be less risky and, when comparing its historical volatility, Chin Poon Industrial Co is 1.61 times less risky than Compeq Manufacturing. The stock trades about -0.06 of its potential returns per unit of risk. The Compeq Manufacturing Co is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 7,030 in Compeq Manufacturing Co on September 18, 2024 and sell it today you would lose (300.00) from holding Compeq Manufacturing Co or give up 4.27% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Chin Poon Industrial Co vs. Compeq Manufacturing Co
Performance |
Timeline |
Chin Poon Industrial |
Compeq Manufacturing |
Chin Poon and Compeq Manufacturing Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Chin Poon and Compeq Manufacturing
The main advantage of trading using opposite Chin Poon and Compeq Manufacturing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chin Poon position performs unexpectedly, Compeq Manufacturing 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 Compeq Manufacturing will offset losses from the drop in Compeq Manufacturing's long position.Chin Poon vs. Compeq Manufacturing Co | Chin Poon vs. Unitech Printed Circuit | Chin Poon vs. Gold Circuit Electronics | Chin Poon vs. WUS Printed Circuit |
Compeq Manufacturing vs. AU Optronics | Compeq Manufacturing vs. Innolux Corp | Compeq Manufacturing vs. Ruentex Development Co | Compeq Manufacturing vs. WiseChip Semiconductor |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
Transaction History View history of all your transactions and understand their impact on performance | |
Bonds Directory Find actively traded corporate debentures issued by US companies | |
Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |