Correlation Between CHC Healthcare and Shieh Yih
Can any of the company-specific risk be diversified away by investing in both CHC Healthcare and Shieh Yih 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 CHC Healthcare and Shieh Yih into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CHC Healthcare Group and Shieh Yih Machinery, you can compare the effects of market volatilities on CHC Healthcare and Shieh Yih 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 CHC Healthcare with a short position of Shieh Yih. Check out your portfolio center. Please also check ongoing floating volatility patterns of CHC Healthcare and Shieh Yih.
Diversification Opportunities for CHC Healthcare and Shieh Yih
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CHC and Shieh is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding CHC Healthcare Group and Shieh Yih Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shieh Yih Machinery and CHC Healthcare 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 CHC Healthcare Group are associated (or correlated) with Shieh Yih. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shieh Yih Machinery has no effect on the direction of CHC Healthcare i.e., CHC Healthcare and Shieh Yih go up and down completely randomly.
Pair Corralation between CHC Healthcare and Shieh Yih
Assuming the 90 days trading horizon CHC Healthcare Group is expected to under-perform the Shieh Yih. But the stock apears to be less risky and, when comparing its historical volatility, CHC Healthcare Group is 1.92 times less risky than Shieh Yih. The stock trades about 0.0 of its potential returns per unit of risk. The Shieh Yih Machinery is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 3,815 in Shieh Yih Machinery on September 25, 2024 and sell it today you would earn a total of 55.00 from holding Shieh Yih Machinery or generate 1.44% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
CHC Healthcare Group vs. Shieh Yih Machinery
Performance |
Timeline |
CHC Healthcare Group |
Shieh Yih Machinery |
CHC Healthcare and Shieh Yih Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with CHC Healthcare and Shieh Yih
The main advantage of trading using opposite CHC Healthcare and Shieh Yih positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CHC Healthcare position performs unexpectedly, Shieh Yih 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 Shieh Yih will offset losses from the drop in Shieh Yih's long position.CHC Healthcare vs. GenMont Biotech | CHC Healthcare vs. Sinphar Pharmaceutical Co | CHC Healthcare vs. Abnova Taiwan Corp | CHC Healthcare vs. Wellell |
Shieh Yih vs. Fu Burg Industrial | Shieh Yih vs. Phytohealth Corp | Shieh Yih vs. Ton Yi Industrial | Shieh Yih vs. CHC Healthcare Group |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
Stocks Directory Find actively traded stocks across global markets | |
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
Global Correlations Find global opportunities by holding instruments from different markets | |
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |