Correlation Between Hsinjing Holding and TSEC Corp
Can any of the company-specific risk be diversified away by investing in both Hsinjing Holding and TSEC Corp 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 Hsinjing Holding and TSEC Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hsinjing Holding Co and TSEC Corp, you can compare the effects of market volatilities on Hsinjing Holding and TSEC Corp 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 Hsinjing Holding with a short position of TSEC Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hsinjing Holding and TSEC Corp.
Diversification Opportunities for Hsinjing Holding and TSEC Corp
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hsinjing and TSEC is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Hsinjing Holding Co and TSEC Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TSEC Corp and Hsinjing Holding 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 Hsinjing Holding Co are associated (or correlated) with TSEC Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TSEC Corp has no effect on the direction of Hsinjing Holding i.e., Hsinjing Holding and TSEC Corp go up and down completely randomly.
Pair Corralation between Hsinjing Holding and TSEC Corp
Assuming the 90 days trading horizon Hsinjing Holding Co is expected to under-perform the TSEC Corp. But the stock apears to be less risky and, when comparing its historical volatility, Hsinjing Holding Co is 1.96 times less risky than TSEC Corp. The stock trades about -0.05 of its potential returns per unit of risk. The TSEC Corp is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,805 in TSEC Corp on December 30, 2024 and sell it today you would earn a total of 75.00 from holding TSEC Corp or generate 4.16% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Hsinjing Holding Co vs. TSEC Corp
Performance |
Timeline |
Hsinjing Holding |
TSEC Corp |
Hsinjing Holding and TSEC Corp Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Hsinjing Holding and TSEC Corp
The main advantage of trading using opposite Hsinjing Holding and TSEC Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hsinjing Holding position performs unexpectedly, TSEC Corp 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 TSEC Corp will offset losses from the drop in TSEC Corp's long position.Hsinjing Holding vs. Orient Semiconductor Electronics | Hsinjing Holding vs. Youngtek Electronics | Hsinjing Holding vs. International CSRC Investment | Hsinjing Holding vs. Thinking Electronic Industrial |
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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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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