Correlation Between Excelsior Medical and Farglory Life
Can any of the company-specific risk be diversified away by investing in both Excelsior Medical and Farglory Life 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 Excelsior Medical and Farglory Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Excelsior Medical Co and Farglory Life Insurance, you can compare the effects of market volatilities on Excelsior Medical and Farglory Life 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 Excelsior Medical with a short position of Farglory Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Excelsior Medical and Farglory Life.
Diversification Opportunities for Excelsior Medical and Farglory Life
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Excelsior and Farglory is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Excelsior Medical Co and Farglory Life Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Farglory Life Insurance and Excelsior Medical 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 Excelsior Medical Co are associated (or correlated) with Farglory Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Farglory Life Insurance has no effect on the direction of Excelsior Medical i.e., Excelsior Medical and Farglory Life go up and down completely randomly.
Pair Corralation between Excelsior Medical and Farglory Life
Assuming the 90 days trading horizon Excelsior Medical Co is expected to under-perform the Farglory Life. But the stock apears to be less risky and, when comparing its historical volatility, Excelsior Medical Co is 101.66 times less risky than Farglory Life. The stock trades about -0.12 of its potential returns per unit of risk. The Farglory Life Insurance is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,722 in Farglory Life Insurance on October 9, 2024 and sell it today you would lose (62.00) from holding Farglory Life Insurance or give up 3.6% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 98.41% |
Values | Daily Returns |
Excelsior Medical Co vs. Farglory Life Insurance
Performance |
Timeline |
Excelsior Medical |
Farglory Life Insurance |
Excelsior Medical and Farglory Life Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Excelsior Medical and Farglory Life
The main advantage of trading using opposite Excelsior Medical and Farglory Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Excelsior Medical position performs unexpectedly, Farglory Life 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 Farglory Life will offset losses from the drop in Farglory Life's long position.Excelsior Medical vs. Wellell | Excelsior Medical vs. YungShin Global Holding | Excelsior Medical vs. Abnova Taiwan Corp | Excelsior Medical vs. Phytohealth Corp |
Farglory Life vs. Taiwan Semiconductor Manufacturing | Farglory Life vs. Hon Hai Precision | Farglory Life vs. MediaTek | Farglory Life vs. Chunghwa Telecom Co |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |