Correlation Between Tacheng Real and An Shin
Can any of the company-specific risk be diversified away by investing in both Tacheng Real and An Shin 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 Tacheng Real and An Shin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tacheng Real Estate and An Shin Food Services, you can compare the effects of market volatilities on Tacheng Real and An Shin 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 Tacheng Real with a short position of An Shin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tacheng Real and An Shin.
Diversification Opportunities for Tacheng Real and An Shin
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Tacheng and 1259 is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Tacheng Real Estate and An Shin Food Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on An Shin Food and Tacheng Real 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 Tacheng Real Estate are associated (or correlated) with An Shin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of An Shin Food has no effect on the direction of Tacheng Real i.e., Tacheng Real and An Shin go up and down completely randomly.
Pair Corralation between Tacheng Real and An Shin
Assuming the 90 days trading horizon Tacheng Real Estate is expected to generate 4.6 times more return on investment than An Shin. However, Tacheng Real is 4.6 times more volatile than An Shin Food Services. It trades about 0.02 of its potential returns per unit of risk. An Shin Food Services is currently generating about -0.2 per unit of risk. If you would invest 4,130 in Tacheng Real Estate on September 25, 2024 and sell it today you would earn a total of 20.00 from holding Tacheng Real Estate or generate 0.48% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Tacheng Real Estate vs. An Shin Food Services
Performance |
Timeline |
Tacheng Real Estate |
An Shin Food |
Tacheng Real and An Shin Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Tacheng Real and An Shin
The main advantage of trading using opposite Tacheng Real and An Shin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tacheng Real position performs unexpectedly, An Shin 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 An Shin will offset losses from the drop in An Shin's long position.Tacheng Real vs. Sitronix Technology Corp | Tacheng Real vs. Arbor Technology | Tacheng Real vs. Asmedia Technology | Tacheng Real vs. Quanta Computer |
An Shin vs. Gourmet Master Co | An Shin vs. Wowprime Corp | An Shin vs. Kura Sushi Asia | An Shin vs. Hi Lai Foods 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 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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