Correlation Between First Copper and Acer E
Can any of the company-specific risk be diversified away by investing in both First Copper and Acer E 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 First Copper and Acer E into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Copper Technology and Acer E Enabling Service, you can compare the effects of market volatilities on First Copper and Acer E 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 First Copper with a short position of Acer E. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Copper and Acer E.
Diversification Opportunities for First Copper and Acer E
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between First and Acer is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding First Copper Technology and Acer E Enabling Service in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acer E Enabling and First Copper 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 First Copper Technology are associated (or correlated) with Acer E. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acer E Enabling has no effect on the direction of First Copper i.e., First Copper and Acer E go up and down completely randomly.
Pair Corralation between First Copper and Acer E
Assuming the 90 days trading horizon First Copper Technology is expected to generate 0.98 times more return on investment than Acer E. However, First Copper Technology is 1.02 times less risky than Acer E. It trades about 0.05 of its potential returns per unit of risk. Acer E Enabling Service is currently generating about 0.04 per unit of risk. If you would invest 2,980 in First Copper Technology on September 14, 2024 and sell it today you would earn a total of 940.00 from holding First Copper Technology or generate 31.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
First Copper Technology vs. Acer E Enabling Service
Performance |
| Timeline |
| First Copper Technology |
| Acer E Enabling |
First Copper and Acer E Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Copper and Acer E
The main advantage of trading using opposite First Copper and Acer E positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Copper position performs unexpectedly, Acer E 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 Acer E will offset losses from the drop in Acer E's long position.| First Copper vs. Tainan Spinning Co | First Copper vs. Lealea Enterprise Co | First Copper vs. China Petrochemical Development | First Copper vs. Ruentex Development Co |
| Acer E vs. Kao Fong Machinery | Acer E vs. Sitronix Technology Corp | Acer E vs. First Copper Technology | Acer E vs. Dawushan Farm Tech |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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