Correlation Between An Shin and Averlogic Technologies
Can any of the company-specific risk be diversified away by investing in both An Shin and Averlogic Technologies 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 An Shin and Averlogic Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between An Shin Food Services and Averlogic Technologies, you can compare the effects of market volatilities on An Shin and Averlogic Technologies 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 An Shin with a short position of Averlogic Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of An Shin and Averlogic Technologies.
Diversification Opportunities for An Shin and Averlogic Technologies
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 1259 and Averlogic is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding An Shin Food Services and Averlogic Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Averlogic Technologies and An Shin 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 An Shin Food Services are associated (or correlated) with Averlogic Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Averlogic Technologies has no effect on the direction of An Shin i.e., An Shin and Averlogic Technologies go up and down completely randomly.
Pair Corralation between An Shin and Averlogic Technologies
Assuming the 90 days trading horizon An Shin Food Services is expected to under-perform the Averlogic Technologies. But the stock apears to be less risky and, when comparing its historical volatility, An Shin Food Services is 5.27 times less risky than Averlogic Technologies. The stock trades about -0.07 of its potential returns per unit of risk. The Averlogic Technologies is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 3,121 in Averlogic Technologies on September 12, 2024 and sell it today you would earn a total of 1,224 from holding Averlogic Technologies or generate 39.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
An Shin Food Services vs. Averlogic Technologies
Performance |
| Timeline |
| An Shin Food |
| Averlogic Technologies |
An Shin and Averlogic Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with An Shin and Averlogic Technologies
The main advantage of trading using opposite An Shin and Averlogic Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if An Shin position performs unexpectedly, Averlogic Technologies 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 Averlogic Technologies will offset losses from the drop in Averlogic Technologies' long position.| An Shin vs. Gourmet Master Co | An Shin vs. Wowprime Corp | An Shin vs. Kura Sushi Asia | An Shin vs. TTFB Co |
| Averlogic Technologies vs. Onyx Healthcare | Averlogic Technologies vs. Phytohealth Corp | Averlogic Technologies vs. Phoenix Silicon International | Averlogic Technologies vs. An Shin Food Services |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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