Correlation Between PChome Online and Dimerco Data
Can any of the company-specific risk be diversified away by investing in both PChome Online and Dimerco Data 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 PChome Online and Dimerco Data into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PChome Online and Dimerco Data System, you can compare the effects of market volatilities on PChome Online and Dimerco Data 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 PChome Online with a short position of Dimerco Data. Check out your portfolio center. Please also check ongoing floating volatility patterns of PChome Online and Dimerco Data.
Diversification Opportunities for PChome Online and Dimerco Data
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PChome and Dimerco is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding PChome Online and Dimerco Data System in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dimerco Data System and PChome Online 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 PChome Online are associated (or correlated) with Dimerco Data. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dimerco Data System has no effect on the direction of PChome Online i.e., PChome Online and Dimerco Data go up and down completely randomly.
Pair Corralation between PChome Online and Dimerco Data
Assuming the 90 days trading horizon PChome Online is expected to generate 3.82 times more return on investment than Dimerco Data. However, PChome Online is 3.82 times more volatile than Dimerco Data System. It trades about 0.15 of its potential returns per unit of risk. Dimerco Data System is currently generating about 0.01 per unit of risk. If you would invest 3,025 in PChome Online on October 8, 2024 and sell it today you would earn a total of 1,280 from holding PChome Online or generate 42.31% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
PChome Online vs. Dimerco Data System
Performance |
Timeline |
PChome Online |
Dimerco Data System |
PChome Online and Dimerco Data Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with PChome Online and Dimerco Data
The main advantage of trading using opposite PChome Online and Dimerco Data positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PChome Online position performs unexpectedly, Dimerco Data 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 Dimerco Data will offset losses from the drop in Dimerco Data's long position.PChome Online vs. momo Inc | PChome Online vs. President Chain Store | PChome Online vs. Uni President Enterprises Corp | PChome Online vs. Taiwan FamilyMart Co |
Dimerco Data vs. EnTie Commercial Bank | Dimerco Data vs. Yuanta Financial Holdings | Dimerco Data vs. Pontex Polyblend CoLtd | Dimerco Data vs. CHINA DEVELOPMENT FINANCIAL |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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