Correlation Between Taiwan Mobile and Min Aik
Can any of the company-specific risk be diversified away by investing in both Taiwan Mobile and Min Aik 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 Mobile and Min Aik into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Taiwan Mobile Co and Min Aik Technology, you can compare the effects of market volatilities on Taiwan Mobile and Min Aik 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 Mobile with a short position of Min Aik. Check out your portfolio center. Please also check ongoing floating volatility patterns of Taiwan Mobile and Min Aik.
Diversification Opportunities for Taiwan Mobile and Min Aik
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Taiwan and Min is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Taiwan Mobile Co and Min Aik Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Min Aik Technology and Taiwan Mobile 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 Mobile Co are associated (or correlated) with Min Aik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Min Aik Technology has no effect on the direction of Taiwan Mobile i.e., Taiwan Mobile and Min Aik go up and down completely randomly.
Pair Corralation between Taiwan Mobile and Min Aik
Assuming the 90 days trading horizon Taiwan Mobile Co is expected to generate 0.71 times more return on investment than Min Aik. However, Taiwan Mobile Co is 1.41 times less risky than Min Aik. It trades about 0.02 of its potential returns per unit of risk. Min Aik Technology is currently generating about -0.07 per unit of risk. If you would invest 11,400 in Taiwan Mobile Co on September 15, 2024 and sell it today you would earn a total of 50.00 from holding Taiwan Mobile Co or generate 0.44% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Taiwan Mobile Co vs. Min Aik Technology
Performance |
Timeline |
Taiwan Mobile |
Min Aik Technology |
Taiwan Mobile and Min Aik Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Taiwan Mobile and Min Aik
The main advantage of trading using opposite Taiwan Mobile and Min Aik positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Taiwan Mobile position performs unexpectedly, Min Aik 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 Min Aik will offset losses from the drop in Min Aik's long position.Taiwan Mobile vs. Cheng Mei Materials | Taiwan Mobile vs. Lemtech Holdings Co | Taiwan Mobile vs. Chia Chang Co | Taiwan Mobile vs. Ruentex Development Co |
Min Aik vs. AU Optronics | Min Aik vs. Innolux Corp | Min Aik vs. Ruentex Development Co | Min Aik 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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