Correlation Between Accton Technology and Chiu Ting
Can any of the company-specific risk be diversified away by investing in both Accton Technology and Chiu Ting 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 Accton Technology and Chiu Ting into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Accton Technology Corp and Chiu Ting Machinery, you can compare the effects of market volatilities on Accton Technology and Chiu Ting 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 Accton Technology with a short position of Chiu Ting. Check out your portfolio center. Please also check ongoing floating volatility patterns of Accton Technology and Chiu Ting.
Diversification Opportunities for Accton Technology and Chiu Ting
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Accton and Chiu is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Accton Technology Corp and Chiu Ting Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chiu Ting Machinery and Accton Technology 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 Accton Technology Corp are associated (or correlated) with Chiu Ting. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chiu Ting Machinery has no effect on the direction of Accton Technology i.e., Accton Technology and Chiu Ting go up and down completely randomly.
Pair Corralation between Accton Technology and Chiu Ting
Assuming the 90 days trading horizon Accton Technology Corp is expected to generate 1.13 times more return on investment than Chiu Ting. However, Accton Technology is 1.13 times more volatile than Chiu Ting Machinery. It trades about 0.05 of its potential returns per unit of risk. Chiu Ting Machinery is currently generating about 0.01 per unit of risk. If you would invest 52,800 in Accton Technology Corp on September 2, 2024 and sell it today you would earn a total of 12,900 from holding Accton Technology Corp or generate 24.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Accton Technology Corp vs. Chiu Ting Machinery
Performance |
| Timeline |
| Accton Technology Corp |
| Chiu Ting Machinery |
Accton Technology and Chiu Ting Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Accton Technology and Chiu Ting
The main advantage of trading using opposite Accton Technology and Chiu Ting positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Accton Technology position performs unexpectedly, Chiu Ting 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 Chiu Ting will offset losses from the drop in Chiu Ting's long position.| Accton Technology vs. D Link Corp | Accton Technology vs. Realtek Semiconductor Corp | Accton Technology vs. Winbond Electronics Corp | Accton Technology vs. Compal Electronics |
| Chiu Ting vs. BES Engineering Co | Chiu Ting vs. Continental Holdings Corp | Chiu Ting vs. Kee Tai Properties | Chiu Ting vs. Hung Sheng Construction |
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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