Correlation Between Chia Her and AVerMedia Technologies
Can any of the company-specific risk be diversified away by investing in both Chia Her and AVerMedia 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 Chia Her and AVerMedia Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chia Her Industrial and AVerMedia Technologies, you can compare the effects of market volatilities on Chia Her and AVerMedia 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 Chia Her with a short position of AVerMedia Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chia Her and AVerMedia Technologies.
Diversification Opportunities for Chia Her and AVerMedia Technologies
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Chia and AVerMedia is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Chia Her Industrial and AVerMedia Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AVerMedia Technologies and Chia Her 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 Chia Her Industrial are associated (or correlated) with AVerMedia Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AVerMedia Technologies has no effect on the direction of Chia Her i.e., Chia Her and AVerMedia Technologies go up and down completely randomly.
Pair Corralation between Chia Her and AVerMedia Technologies
Assuming the 90 days trading horizon Chia Her Industrial is expected to generate 0.9 times more return on investment than AVerMedia Technologies. However, Chia Her Industrial is 1.12 times less risky than AVerMedia Technologies. It trades about 0.03 of its potential returns per unit of risk. AVerMedia Technologies is currently generating about 0.02 per unit of risk. If you would invest 2,185 in Chia Her Industrial on September 4, 2024 and sell it today you would earn a total of 350.00 from holding Chia Her Industrial or generate 16.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chia Her Industrial vs. AVerMedia Technologies
Performance |
| Timeline |
| Chia Her Industrial |
| AVerMedia Technologies |
Chia Her and AVerMedia Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chia Her and AVerMedia Technologies
The main advantage of trading using opposite Chia Her and AVerMedia Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chia Her position performs unexpectedly, AVerMedia 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 AVerMedia Technologies will offset losses from the drop in AVerMedia Technologies' long position.| Chia Her vs. Carnival Industrial Corp | Chia Her vs. I Hwa Industrial Co | Chia Her vs. Hung Chou Fiber | Chia Her vs. Tung Ho Textile |
| AVerMedia Technologies vs. Tainan Spinning Co | AVerMedia Technologies vs. Chia Her Industrial | AVerMedia Technologies vs. WiseChip Semiconductor | AVerMedia Technologies vs. Novatek Microelectronics Corp |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |