Correlation Between ABOV Semiconductor and Stic Investments
Can any of the company-specific risk be diversified away by investing in both ABOV Semiconductor and Stic Investments 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 ABOV Semiconductor and Stic Investments into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ABOV Semiconductor Co and Stic Investments, you can compare the effects of market volatilities on ABOV Semiconductor and Stic Investments 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 ABOV Semiconductor with a short position of Stic Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of ABOV Semiconductor and Stic Investments.
Diversification Opportunities for ABOV Semiconductor and Stic Investments
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between ABOV and Stic is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding ABOV Semiconductor Co and Stic Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stic Investments and ABOV Semiconductor 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 ABOV Semiconductor Co are associated (or correlated) with Stic Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stic Investments has no effect on the direction of ABOV Semiconductor i.e., ABOV Semiconductor and Stic Investments go up and down completely randomly.
Pair Corralation between ABOV Semiconductor and Stic Investments
Assuming the 90 days trading horizon ABOV Semiconductor is expected to generate 1.07 times less return on investment than Stic Investments. In addition to that, ABOV Semiconductor is 2.27 times more volatile than Stic Investments. It trades about 0.02 of its total potential returns per unit of risk. Stic Investments is currently generating about 0.05 per unit of volatility. If you would invest 637,725 in Stic Investments on August 26, 2024 and sell it today you would earn a total of 142,275 from holding Stic Investments or generate 22.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
ABOV Semiconductor Co vs. Stic Investments
Performance |
| Timeline |
| ABOV Semiconductor |
| Stic Investments |
ABOV Semiconductor and Stic Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ABOV Semiconductor and Stic Investments
The main advantage of trading using opposite ABOV Semiconductor and Stic Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ABOV Semiconductor position performs unexpectedly, Stic Investments 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 Stic Investments will offset losses from the drop in Stic Investments' long position.| ABOV Semiconductor vs. Korea Real Estate | ABOV Semiconductor vs. Korea Ratings Co | ABOV Semiconductor vs. IQuest Co | ABOV Semiconductor vs. Wonbang Tech Co |
| Stic Investments vs. Korea Real Estate | Stic Investments vs. Korea Ratings Co | Stic Investments vs. IQuest Co | Stic Investments vs. Wonbang Tech 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |