Correlation Between Accton Technology and New Advanced
Can any of the company-specific risk be diversified away by investing in both Accton Technology and New Advanced 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 New Advanced 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 New Advanced Electronics, you can compare the effects of market volatilities on Accton Technology and New Advanced 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 New Advanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Accton Technology and New Advanced.
Diversification Opportunities for Accton Technology and New Advanced
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Accton and New is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Accton Technology Corp and New Advanced Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New Advanced Electronics 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 New Advanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New Advanced Electronics has no effect on the direction of Accton Technology i.e., Accton Technology and New Advanced go up and down completely randomly.
Pair Corralation between Accton Technology and New Advanced
Assuming the 90 days trading horizon Accton Technology Corp is expected to generate 1.38 times more return on investment than New Advanced. However, Accton Technology is 1.38 times more volatile than New Advanced Electronics. It trades about 0.08 of its potential returns per unit of risk. New Advanced Electronics is currently generating about -0.04 per unit of risk. If you would invest 25,310 in Accton Technology Corp on August 25, 2024 and sell it today you would earn a total of 38,690 from holding Accton Technology Corp or generate 152.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Accton Technology Corp vs. New Advanced Electronics
Performance |
| Timeline |
| Accton Technology Corp |
| New Advanced Electronics |
Accton Technology and New Advanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Accton Technology and New Advanced
The main advantage of trading using opposite Accton Technology and New Advanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Accton Technology position performs unexpectedly, New Advanced 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 New Advanced will offset losses from the drop in New Advanced's long position.| Accton Technology vs. Novatek Microelectronics Corp | Accton Technology vs. Quanta Computer | Accton Technology vs. United Microelectronics |
| New Advanced vs. Advantech Co | New Advanced vs. IEI Integration Corp | New Advanced vs. Flytech Technology Co | New Advanced vs. ADLINK 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |