Correlation Between Group Up and Chi Sheng
Can any of the company-specific risk be diversified away by investing in both Group Up and Chi Sheng 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 Group Up and Chi Sheng into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Group Up Industrial and Chi Sheng Chemical, you can compare the effects of market volatilities on Group Up and Chi Sheng 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 Group Up with a short position of Chi Sheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Group Up and Chi Sheng.
Diversification Opportunities for Group Up and Chi Sheng
Good diversification
The 3 months correlation between Group and Chi is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Group Up Industrial and Chi Sheng Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chi Sheng Chemical and Group Up 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 Group Up Industrial are associated (or correlated) with Chi Sheng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chi Sheng Chemical has no effect on the direction of Group Up i.e., Group Up and Chi Sheng go up and down completely randomly.
Pair Corralation between Group Up and Chi Sheng
Assuming the 90 days trading horizon Group Up Industrial is expected to under-perform the Chi Sheng. In addition to that, Group Up is 1.79 times more volatile than Chi Sheng Chemical. It trades about -0.16 of its total potential returns per unit of risk. Chi Sheng Chemical is currently generating about 0.13 per unit of volatility. If you would invest 2,805 in Chi Sheng Chemical on December 29, 2024 and sell it today you would earn a total of 230.00 from holding Chi Sheng Chemical or generate 8.2% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Group Up Industrial vs. Chi Sheng Chemical
Performance |
Timeline |
Group Up Industrial |
Chi Sheng Chemical |
Group Up and Chi Sheng Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Group Up and Chi Sheng
The main advantage of trading using opposite Group Up and Chi Sheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Group Up position performs unexpectedly, Chi Sheng 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 Chi Sheng will offset losses from the drop in Chi Sheng's long position.Group Up vs. Chung Lien Transportation | Group Up vs. Thinking Electronic Industrial | Group Up vs. Song Shang Electronics | Group Up vs. Chander Electronics Corp |
Chi Sheng vs. Thinking Electronic Industrial | Chi Sheng vs. Lung Hwa Electronics | Chi Sheng vs. Medigen Biotechnology | Chi Sheng vs. Advanced Optoelectronic Technology |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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