Correlation Between Hi Sharp and Tai Tung
Can any of the company-specific risk be diversified away by investing in both Hi Sharp and Tai Tung 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 Hi Sharp and Tai Tung into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hi Sharp Electronics and Tai Tung Communication, you can compare the effects of market volatilities on Hi Sharp and Tai Tung 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 Hi Sharp with a short position of Tai Tung. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hi Sharp and Tai Tung.
Diversification Opportunities for Hi Sharp and Tai Tung
Very good diversification
The 3 months correlation between 3128 and Tai is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Hi Sharp Electronics and Tai Tung Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tai Tung Communication and Hi Sharp 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 Hi Sharp Electronics are associated (or correlated) with Tai Tung. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tai Tung Communication has no effect on the direction of Hi Sharp i.e., Hi Sharp and Tai Tung go up and down completely randomly.
Pair Corralation between Hi Sharp and Tai Tung
Assuming the 90 days trading horizon Hi Sharp Electronics is expected to generate 2.03 times more return on investment than Tai Tung. However, Hi Sharp is 2.03 times more volatile than Tai Tung Communication. It trades about 0.08 of its potential returns per unit of risk. Tai Tung Communication is currently generating about 0.1 per unit of risk. If you would invest 2,900 in Hi Sharp Electronics on December 5, 2024 and sell it today you would earn a total of 105.00 from holding Hi Sharp Electronics or generate 3.62% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Hi Sharp Electronics vs. Tai Tung Communication
Performance |
Timeline |
Hi Sharp Electronics |
Tai Tung Communication |
Hi Sharp and Tai Tung Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Hi Sharp and Tai Tung
The main advantage of trading using opposite Hi Sharp and Tai Tung positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hi Sharp position performs unexpectedly, Tai Tung 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 Tai Tung will offset losses from the drop in Tai Tung's long position.Hi Sharp vs. Tehmag Foods | Hi Sharp vs. Lian Hwa Foods | Hi Sharp vs. Shinkong Insurance Co | Hi Sharp vs. Newretail Co |
Tai Tung vs. Zinwell | Tai Tung vs. Mercuries Life Insurance | Tai Tung vs. Darwin Precisions Corp | Tai Tung vs. Jinli Group Holdings |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |