Correlation Between Globus Medical, and Chunghwa Telecom

Can any of the company-specific risk be diversified away by investing in both Globus Medical, and Chunghwa Telecom 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 Globus Medical, and Chunghwa Telecom into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Globus Medical, and Chunghwa Telecom Co,, you can compare the effects of market volatilities on Globus Medical, and Chunghwa Telecom 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 Globus Medical, with a short position of Chunghwa Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Globus Medical, and Chunghwa Telecom.

Diversification Opportunities for Globus Medical, and Chunghwa Telecom

-0.83

Correlation Coefficient

Globus Medical,  Chunghwa Telecom

Pay attention - limited upside

The 3 months correlation between Globus and Chunghwa is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Globus Medical, and Chunghwa Telecom Co, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chunghwa Telecom Co, and Globus Medical, 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 Globus Medical, are associated (or correlated) with Chunghwa Telecom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chunghwa Telecom Co, has no effect on the direction of Globus Medical, i.e., Globus Medical, and Chunghwa Telecom go up and down completely randomly.

Pair Corralation between Globus Medical, and Chunghwa Telecom

Assuming the 90 days trading horizon Globus Medical, is expected to under-perform the Chunghwa Telecom. In addition to that, Globus Medical, is 1.84 times more volatile than Chunghwa Telecom Co,. It trades about -0.13 of its total potential returns per unit of risk. Chunghwa Telecom Co, is currently generating about 0.11 per unit of volatility. If you would invest  5,454  in Chunghwa Telecom Co, on April 25, 2025 and sell it today you would earn a total of  756.00  from holding Chunghwa Telecom Co, or generate 13.86% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	98.39%
Values	Daily Returns

Globus Medical,  vs.  Chunghwa Telecom Co,

Globus Medical,

Risk-Adjusted Performance

Very Weak

Over the last 90 days Globus Medical, has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's primary indicators remain somewhat strong which may send shares a bit higher in August 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Chunghwa Telecom Co,

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Chunghwa Telecom Co, are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak technical indicators, Chunghwa Telecom sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Globus Medical, and Chunghwa Telecom

The main advantage of trading using opposite Globus Medical, and Chunghwa Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Globus Medical, position performs unexpectedly, Chunghwa Telecom 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 Chunghwa Telecom will offset losses from the drop in Chunghwa Telecom's long position.

The idea behind Globus Medical, and Chunghwa Telecom Co, pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.