Correlation Between New Advanced and Tze Shin

Can any of the company-specific risk be diversified away by investing in both New Advanced and Tze Shin 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 New Advanced and Tze Shin into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between New Advanced Electronics and Tze Shin International, you can compare the effects of market volatilities on New Advanced and Tze Shin 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 New Advanced with a short position of Tze Shin. Check out your portfolio center. Please also check ongoing floating volatility patterns of New Advanced and Tze Shin.

Diversification Opportunities for New Advanced and Tze Shin

0.0

Correlation Coefficient

New Advanced  Tze Shin

Pay attention - limited upside

The 3 months correlation between New and Tze is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding New Advanced Electronics and Tze Shin International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tze Shin International and New Advanced 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 New Advanced Electronics are associated (or correlated) with Tze Shin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tze Shin International has no effect on the direction of New Advanced i.e., New Advanced and Tze Shin go up and down completely randomly.

Pair Corralation between New Advanced and Tze Shin

If you would invest (100.00) in New Advanced Electronics on October 7, 2024 and sell it today you would earn a total of  100.00  from holding New Advanced Electronics or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

New Advanced Electronics  vs.  Tze Shin International

New Advanced Electronics

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days New Advanced Electronics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, New Advanced is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Tze Shin International

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Tze Shin International has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest abnormal performance, the Stock's basic indicators remain stable and the latest fuss on Wall Street may also be a sign of long-term gains for the venture sophisticated investors.

Pair Trading with New Advanced and Tze Shin

The main advantage of trading using opposite New Advanced and Tze Shin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New Advanced position performs unexpectedly, Tze Shin 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 Tze Shin will offset losses from the drop in Tze Shin's long position.

The idea behind New Advanced Electronics and Tze Shin International 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.

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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.