Correlation Between Taiwan Weighted and Holy Stone
Can any of the company-specific risk be diversified away by investing in both Taiwan Weighted and Holy Stone 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 Taiwan Weighted and Holy Stone into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Taiwan Weighted and Holy Stone Enterprise, you can compare the effects of market volatilities on Taiwan Weighted and Holy Stone 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 Taiwan Weighted with a short position of Holy Stone. Check out your portfolio center. Please also check ongoing floating volatility patterns of Taiwan Weighted and Holy Stone.
Diversification Opportunities for Taiwan Weighted and Holy Stone
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Taiwan and Holy is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Taiwan Weighted and Holy Stone Enterprise in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Holy Stone Enterprise and Taiwan Weighted 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 Taiwan Weighted are associated (or correlated) with Holy Stone. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Holy Stone Enterprise has no effect on the direction of Taiwan Weighted i.e., Taiwan Weighted and Holy Stone go up and down completely randomly.
Pair Corralation between Taiwan Weighted and Holy Stone
Assuming the 90 days trading horizon Taiwan Weighted is expected to under-perform the Holy Stone. In addition to that, Taiwan Weighted is 1.28 times more volatile than Holy Stone Enterprise. It trades about -0.1 of its total potential returns per unit of risk. Holy Stone Enterprise is currently generating about 0.09 per unit of volatility. If you would invest 8,630 in Holy Stone Enterprise on December 29, 2024 and sell it today you would earn a total of 390.00 from holding Holy Stone Enterprise or generate 4.52% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 98.25% |
Values | Daily Returns |
Taiwan Weighted vs. Holy Stone Enterprise
Performance |
Timeline |
Taiwan Weighted and Holy Stone Volatility Contrast
Predicted Return Density |
Returns |
Taiwan Weighted
Pair trading matchups for Taiwan Weighted
Holy Stone Enterprise
Pair trading matchups for Holy Stone
Pair Trading with Taiwan Weighted and Holy Stone
The main advantage of trading using opposite Taiwan Weighted and Holy Stone positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Taiwan Weighted position performs unexpectedly, Holy Stone 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 Holy Stone will offset losses from the drop in Holy Stone's long position.Taiwan Weighted vs. Medigen Biotechnology | Taiwan Weighted vs. Mega Financial Holding | Taiwan Weighted vs. First Insurance Co | Taiwan Weighted vs. Shanghai Commercial Savings |
Holy Stone vs. Walsin Technology Corp | Holy Stone vs. Yageo Corp | Holy Stone vs. Tripod Technology Corp | Holy Stone vs. Asia Optical Co |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |