Correlation Between Phoenix Silicon and Fu Burg
Can any of the company-specific risk be diversified away by investing in both Phoenix Silicon and Fu Burg 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 Phoenix Silicon and Fu Burg into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Phoenix Silicon International and Fu Burg Industrial, you can compare the effects of market volatilities on Phoenix Silicon and Fu Burg 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 Phoenix Silicon with a short position of Fu Burg. Check out your portfolio center. Please also check ongoing floating volatility patterns of Phoenix Silicon and Fu Burg.
Diversification Opportunities for Phoenix Silicon and Fu Burg
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Phoenix and 8929 is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Phoenix Silicon International and Fu Burg Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fu Burg Industrial and Phoenix Silicon 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 Phoenix Silicon International are associated (or correlated) with Fu Burg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fu Burg Industrial has no effect on the direction of Phoenix Silicon i.e., Phoenix Silicon and Fu Burg go up and down completely randomly.
Pair Corralation between Phoenix Silicon and Fu Burg
Assuming the 90 days trading horizon Phoenix Silicon International is expected to generate 0.55 times more return on investment than Fu Burg. However, Phoenix Silicon International is 1.82 times less risky than Fu Burg. It trades about -0.07 of its potential returns per unit of risk. Fu Burg Industrial is currently generating about -0.08 per unit of risk. If you would invest 14,250 in Phoenix Silicon International on September 26, 2024 and sell it today you would lose (600.00) from holding Phoenix Silicon International or give up 4.21% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Phoenix Silicon International vs. Fu Burg Industrial
Performance |
Timeline |
Phoenix Silicon Inte |
Fu Burg Industrial |
Phoenix Silicon and Fu Burg Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Phoenix Silicon and Fu Burg
The main advantage of trading using opposite Phoenix Silicon and Fu Burg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Phoenix Silicon position performs unexpectedly, Fu Burg 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 Fu Burg will offset losses from the drop in Fu Burg's long position.Phoenix Silicon vs. Taiwan Semiconductor Manufacturing | Phoenix Silicon vs. MediaTek | Phoenix Silicon vs. United Microelectronics | Phoenix Silicon vs. Novatek Microelectronics Corp |
Fu Burg vs. Asmedia Technology | Fu Burg vs. Arbor Technology | Fu Burg vs. Hung Sheng Construction | Fu Burg vs. Promise 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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