Correlation Between Singatron Enterprise and Tatung System

Can any of the company-specific risk be diversified away by investing in both Singatron Enterprise and Tatung System 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 Singatron Enterprise and Tatung System into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Singatron Enterprise Co and Tatung System Technologies, you can compare the effects of market volatilities on Singatron Enterprise and Tatung System 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 Singatron Enterprise with a short position of Tatung System. Check out your portfolio center. Please also check ongoing floating volatility patterns of Singatron Enterprise and Tatung System.

Diversification Opportunities for Singatron Enterprise and Tatung System

0.57

Correlation Coefficient

Singatron Enterprise  Tatung System

Very weak diversification

The 3 months correlation between Singatron and Tatung is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Singatron Enterprise Co and Tatung System Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tatung System Techno and Singatron Enterprise 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 Singatron Enterprise Co are associated (or correlated) with Tatung System. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tatung System Techno has no effect on the direction of Singatron Enterprise i.e., Singatron Enterprise and Tatung System go up and down completely randomly.

Pair Corralation between Singatron Enterprise and Tatung System

Assuming the 90 days trading horizon Singatron Enterprise is expected to generate 10.78 times less return on investment than Tatung System. In addition to that, Singatron Enterprise is 1.01 times more volatile than Tatung System Technologies. It trades about 0.01 of its total potential returns per unit of risk. Tatung System Technologies is currently generating about 0.08 per unit of volatility. If you would invest  4,879  in Tatung System Technologies on September 12, 2024 and sell it today you would earn a total of  3,971  from holding Tatung System Technologies or generate 81.39% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Singatron Enterprise Co  vs.  Tatung System Technologies

Singatron Enterprise

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Singatron Enterprise Co are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Singatron Enterprise may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Tatung System Techno

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Tatung System Technologies are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Tatung System showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Singatron Enterprise and Tatung System

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

The idea behind Singatron Enterprise Co and Tatung System Technologies 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.