Correlation Between Advancetek Enterprise and GTM Holdings
Can any of the company-specific risk be diversified away by investing in both Advancetek Enterprise and GTM Holdings 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 Advancetek Enterprise and GTM Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Advancetek Enterprise Co and GTM Holdings Corp, you can compare the effects of market volatilities on Advancetek Enterprise and GTM Holdings 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 Advancetek Enterprise with a short position of GTM Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advancetek Enterprise and GTM Holdings.
Diversification Opportunities for Advancetek Enterprise and GTM Holdings
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Advancetek and GTM is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Advancetek Enterprise Co and GTM Holdings Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GTM Holdings Corp and Advancetek Enterprise 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 Advancetek Enterprise Co are associated (or correlated) with GTM Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GTM Holdings Corp has no effect on the direction of Advancetek Enterprise i.e., Advancetek Enterprise and GTM Holdings go up and down completely randomly.
Pair Corralation between Advancetek Enterprise and GTM Holdings
Assuming the 90 days trading horizon Advancetek Enterprise Co is expected to generate 5.37 times more return on investment than GTM Holdings. However, Advancetek Enterprise is 5.37 times more volatile than GTM Holdings Corp. It trades about 0.32 of its potential returns per unit of risk. GTM Holdings Corp is currently generating about 0.08 per unit of risk. If you would invest 6,650 in Advancetek Enterprise Co on September 5, 2024 and sell it today you would earn a total of 1,520 from holding Advancetek Enterprise Co or generate 22.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Advancetek Enterprise Co vs. GTM Holdings Corp
Performance |
| Timeline |
| Advancetek Enterprise |
| GTM Holdings Corp |
Advancetek Enterprise and GTM Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advancetek Enterprise and GTM Holdings
The main advantage of trading using opposite Advancetek Enterprise and GTM Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advancetek Enterprise position performs unexpectedly, GTM Holdings 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 GTM Holdings will offset losses from the drop in GTM Holdings' long position.| Advancetek Enterprise vs. Huaku Development Co | Advancetek Enterprise vs. Ruentex Development Co | Advancetek Enterprise vs. Taiwan Cement Corp | Advancetek Enterprise vs. Symtek Automation Asia |
| GTM Holdings vs. Taiwan Semiconductor Manufacturing | GTM Holdings vs. Yang Ming Marine | GTM Holdings vs. AU Optronics | GTM Holdings vs. Nan Ya Plastics |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |