Correlation Between Ruentex Development and Ampire
Can any of the company-specific risk be diversified away by investing in both Ruentex Development and Ampire 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 Ruentex Development and Ampire into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ruentex Development Co and Ampire Co, you can compare the effects of market volatilities on Ruentex Development and Ampire 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 Ruentex Development with a short position of Ampire. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ruentex Development and Ampire.
Diversification Opportunities for Ruentex Development and Ampire
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ruentex and Ampire is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Ruentex Development Co and Ampire Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ampire and Ruentex Development 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 Ruentex Development Co are associated (or correlated) with Ampire. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ampire has no effect on the direction of Ruentex Development i.e., Ruentex Development and Ampire go up and down completely randomly.
Pair Corralation between Ruentex Development and Ampire
Assuming the 90 days trading horizon Ruentex Development Co is expected to under-perform the Ampire. In addition to that, Ruentex Development is 1.81 times more volatile than Ampire Co. It trades about -0.18 of its total potential returns per unit of risk. Ampire Co is currently generating about 0.02 per unit of volatility. If you would invest 3,245 in Ampire Co on December 30, 2024 and sell it today you would earn a total of 30.00 from holding Ampire Co or generate 0.92% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Ruentex Development Co vs. Ampire Co
Performance |
Timeline |
Ruentex Development |
Ampire |
Ruentex Development and Ampire Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ruentex Development and Ampire
The main advantage of trading using opposite Ruentex Development and Ampire positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ruentex Development position performs unexpectedly, Ampire 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 Ampire will offset losses from the drop in Ampire's long position.Ruentex Development vs. Ruentex Industries | Ruentex Development vs. Pou Chen Corp | Ruentex Development vs. Fubon Financial Holding | Ruentex Development vs. Cathay Financial Holding |
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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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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