Correlation Between Winbond Electronics and Min Aik
Can any of the company-specific risk be diversified away by investing in both Winbond Electronics and Min Aik 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 Winbond Electronics and Min Aik into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Winbond Electronics Corp and Min Aik Technology, you can compare the effects of market volatilities on Winbond Electronics and Min Aik 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 Winbond Electronics with a short position of Min Aik. Check out your portfolio center. Please also check ongoing floating volatility patterns of Winbond Electronics and Min Aik.
Diversification Opportunities for Winbond Electronics and Min Aik
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Winbond and Min is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Winbond Electronics Corp and Min Aik Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Min Aik Technology and Winbond Electronics 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 Winbond Electronics Corp are associated (or correlated) with Min Aik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Min Aik Technology has no effect on the direction of Winbond Electronics i.e., Winbond Electronics and Min Aik go up and down completely randomly.
Pair Corralation between Winbond Electronics and Min Aik
Assuming the 90 days trading horizon Winbond Electronics Corp is expected to under-perform the Min Aik. But the stock apears to be less risky and, when comparing its historical volatility, Winbond Electronics Corp is 1.22 times less risky than Min Aik. The stock trades about -0.4 of its potential returns per unit of risk. The Min Aik Technology is currently generating about -0.25 of returns per unit of risk over similar time horizon. If you would invest 2,700 in Min Aik Technology on September 3, 2024 and sell it today you would lose (350.00) from holding Min Aik Technology or give up 12.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Winbond Electronics Corp vs. Min Aik Technology
Performance |
| Timeline |
| Winbond Electronics Corp |
| Min Aik Technology |
Winbond Electronics and Min Aik Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Winbond Electronics and Min Aik
The main advantage of trading using opposite Winbond Electronics and Min Aik positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Winbond Electronics position performs unexpectedly, Min Aik 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 Min Aik will offset losses from the drop in Min Aik's long position.| Winbond Electronics vs. Macronix International Co | Winbond Electronics vs. United Microelectronics | Winbond Electronics vs. Mosel Vitelic | Winbond Electronics vs. Nanya Technology Corp |
| Min Aik vs. Taiwan Semiconductor Manufacturing | Min Aik vs. Yang Ming Marine | Min Aik vs. ASE Industrial Holding | Min Aik vs. AU Optronics |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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