Correlation Between Dimension Computer and Group Up
Can any of the company-specific risk be diversified away by investing in both Dimension Computer and Group Up 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 Dimension Computer and Group Up into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dimension Computer Technology and Group Up Industrial, you can compare the effects of market volatilities on Dimension Computer and Group Up 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 Dimension Computer with a short position of Group Up. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dimension Computer and Group Up.
Diversification Opportunities for Dimension Computer and Group Up
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Dimension and Group is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Dimension Computer Technology and Group Up Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Group Up Industrial and Dimension Computer 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 Dimension Computer Technology are associated (or correlated) with Group Up. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Group Up Industrial has no effect on the direction of Dimension Computer i.e., Dimension Computer and Group Up go up and down completely randomly.
Pair Corralation between Dimension Computer and Group Up
Assuming the 90 days trading horizon Dimension Computer Technology is expected to under-perform the Group Up. In addition to that, Dimension Computer is 2.06 times more volatile than Group Up Industrial. It trades about -0.05 of its total potential returns per unit of risk. Group Up Industrial is currently generating about 0.06 per unit of volatility. If you would invest 21,950 in Group Up Industrial on December 10, 2024 and sell it today you would earn a total of 400.00 from holding Group Up Industrial or generate 1.82% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Dimension Computer Technology vs. Group Up Industrial
Performance |
Timeline |
Dimension Computer |
Group Up Industrial |
Dimension Computer and Group Up Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Dimension Computer and Group Up
The main advantage of trading using opposite Dimension Computer and Group Up positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dimension Computer position performs unexpectedly, Group Up 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 Group Up will offset losses from the drop in Group Up's long position.Dimension Computer vs. Simple Mart Retail | Dimension Computer vs. Rexon Industrial Corp | Dimension Computer vs. Ching Feng Home | Dimension Computer vs. Ton Yi Industrial |
Group Up vs. Pacific Hospital Supply | Group Up vs. Formosan Union Chemical | Group Up vs. Ma Kuang Healthcare | Group Up vs. Taiwan Speciality Chemicals |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |