Correlation Between Taichung Commercial and Brogent Technologies

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Taichung Commercial and Brogent Technologies 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 Taichung Commercial and Brogent Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Taichung Commercial Bank and Brogent Technologies, you can compare the effects of market volatilities on Taichung Commercial and Brogent Technologies 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 Taichung Commercial with a short position of Brogent Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Taichung Commercial and Brogent Technologies.

Diversification Opportunities for Taichung Commercial and Brogent Technologies

-0.52
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Taichung and Brogent is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Taichung Commercial Bank and Brogent Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brogent Technologies and Taichung Commercial 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 Taichung Commercial Bank are associated (or correlated) with Brogent Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brogent Technologies has no effect on the direction of Taichung Commercial i.e., Taichung Commercial and Brogent Technologies go up and down completely randomly.

Pair Corralation between Taichung Commercial and Brogent Technologies

Assuming the 90 days trading horizon Taichung Commercial Bank is expected to generate 0.44 times more return on investment than Brogent Technologies. However, Taichung Commercial Bank is 2.28 times less risky than Brogent Technologies. It trades about 0.08 of its potential returns per unit of risk. Brogent Technologies is currently generating about 0.03 per unit of risk. If you would invest  1,300  in Taichung Commercial Bank on September 29, 2024 and sell it today you would earn a total of  560.00  from holding Taichung Commercial Bank or generate 43.08% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy99.79%
ValuesDaily Returns

Taichung Commercial Bank  vs.  Brogent Technologies

 Performance 
       Timeline  
Taichung Commercial Bank 

Risk-Adjusted Performance

1 of 100

 
Weak
 
Strong
Weak
Compared to the overall equity markets, risk-adjusted returns on investments in Taichung Commercial Bank are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable basic indicators, Taichung Commercial is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.
Brogent Technologies 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Brogent Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in January 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Taichung Commercial and Brogent Technologies Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Taichung Commercial and Brogent Technologies

The main advantage of trading using opposite Taichung Commercial and Brogent Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Taichung Commercial position performs unexpectedly, Brogent Technologies 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 Brogent Technologies will offset losses from the drop in Brogent Technologies' long position.
The idea behind Taichung Commercial Bank and Brogent Technologies pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.

Other Complementary Tools

Latest Portfolios
Quick portfolio dashboard that showcases your latest portfolios
Equity Analysis
Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities
Performance Analysis
Check effects of mean-variance optimization against your current asset allocation
Portfolio Diagnostics
Use generated alerts and portfolio events aggregator to diagnose current holdings
Commodity Directory
Find actively traded commodities issued by global exchanges