Correlation Between Onyx Healthcare and Feng Ching
Can any of the company-specific risk be diversified away by investing in both Onyx Healthcare and Feng Ching 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 Onyx Healthcare and Feng Ching into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Onyx Healthcare and Feng Ching Metal, you can compare the effects of market volatilities on Onyx Healthcare and Feng Ching 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 Onyx Healthcare with a short position of Feng Ching. Check out your portfolio center. Please also check ongoing floating volatility patterns of Onyx Healthcare and Feng Ching.
Diversification Opportunities for Onyx Healthcare and Feng Ching
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Onyx and Feng is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Onyx Healthcare and Feng Ching Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Feng Ching Metal and Onyx 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 Onyx Healthcare are associated (or correlated) with Feng Ching. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Feng Ching Metal has no effect on the direction of Onyx Healthcare i.e., Onyx Healthcare and Feng Ching go up and down completely randomly.
Pair Corralation between Onyx Healthcare and Feng Ching
Assuming the 90 days trading horizon Onyx Healthcare is expected to under-perform the Feng Ching. But the stock apears to be less risky and, when comparing its historical volatility, Onyx Healthcare is 1.35 times less risky than Feng Ching. The stock trades about -0.01 of its potential returns per unit of risk. The Feng Ching Metal is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 1,820 in Feng Ching Metal on December 29, 2024 and sell it today you would earn a total of 390.00 from holding Feng Ching Metal or generate 21.43% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Onyx Healthcare vs. Feng Ching Metal
Performance |
Timeline |
Onyx Healthcare |
Feng Ching Metal |
Onyx Healthcare and Feng Ching Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Onyx Healthcare and Feng Ching
The main advantage of trading using opposite Onyx Healthcare and Feng Ching positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Onyx Healthcare position performs unexpectedly, Feng Ching 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 Feng Ching will offset losses from the drop in Feng Ching's long position.Onyx Healthcare vs. Shih Kuen Plastics | Onyx Healthcare vs. Kingwaytek Technology Co | Onyx Healthcare vs. Acelon Chemicals Fiber | Onyx Healthcare vs. Ta Chen Stainless |
Feng Ching vs. Unitech Printed Circuit | Feng Ching vs. Primax Electronics | Feng Ching vs. Acbel Polytech | Feng Ching vs. Sercomm Corp |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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