Correlation Between Microelectronics and Auden Techno
Can any of the company-specific risk be diversified away by investing in both Microelectronics and Auden Techno 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 Microelectronics and Auden Techno into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Microelectronics Technology and Auden Techno, you can compare the effects of market volatilities on Microelectronics and Auden Techno 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 Microelectronics with a short position of Auden Techno. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microelectronics and Auden Techno.
Diversification Opportunities for Microelectronics and Auden Techno
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Microelectronics and Auden is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Microelectronics Technology and Auden Techno in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Auden Techno and Microelectronics 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 Microelectronics Technology are associated (or correlated) with Auden Techno. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Auden Techno has no effect on the direction of Microelectronics i.e., Microelectronics and Auden Techno go up and down completely randomly.
Pair Corralation between Microelectronics and Auden Techno
Assuming the 90 days trading horizon Microelectronics Technology is expected to generate 1.19 times more return on investment than Auden Techno. However, Microelectronics is 1.19 times more volatile than Auden Techno. It trades about 0.0 of its potential returns per unit of risk. Auden Techno is currently generating about -0.02 per unit of risk. If you would invest 4,250 in Microelectronics Technology on October 25, 2024 and sell it today you would lose (675.00) from holding Microelectronics Technology or give up 15.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Microelectronics Technology vs. Auden Techno
Performance |
| Timeline |
| Microelectronics Tec |
| Auden Techno |
Microelectronics and Auden Techno Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Microelectronics and Auden Techno
The main advantage of trading using opposite Microelectronics and Auden Techno positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microelectronics position performs unexpectedly, Auden Techno 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 Auden Techno will offset losses from the drop in Auden Techno's long position.| Microelectronics vs. Unimicron Technology Corp | Microelectronics vs. Kinsus Interconnect Technology | Microelectronics vs. Novatek Microelectronics Corp | Microelectronics vs. Delta Electronics |
| Auden Techno vs. CyberTAN Technology | Auden Techno vs. Merry Electronics Co | Auden Techno vs. Unizyx Holding Corp | Auden Techno vs. Microelectronics Technology |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |