Correlation Between Accton Technology and DV Biomed
Can any of the company-specific risk be diversified away by investing in both Accton Technology and DV Biomed 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 DV Biomed 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 DV Biomed Co, you can compare the effects of market volatilities on Accton Technology and DV Biomed 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 DV Biomed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Accton Technology and DV Biomed.
Diversification Opportunities for Accton Technology and DV Biomed
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Accton and 6539 is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Accton Technology Corp and DV Biomed Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DV Biomed 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 DV Biomed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DV Biomed has no effect on the direction of Accton Technology i.e., Accton Technology and DV Biomed go up and down completely randomly.
Pair Corralation between Accton Technology and DV Biomed
Assuming the 90 days trading horizon Accton Technology Corp is expected to generate 12.14 times more return on investment than DV Biomed. However, Accton Technology is 12.14 times more volatile than DV Biomed Co. It trades about 0.42 of its potential returns per unit of risk. DV Biomed Co is currently generating about -0.06 per unit of risk. If you would invest 56,400 in Accton Technology Corp on September 13, 2024 and sell it today you would earn a total of 16,600 from holding Accton Technology Corp or generate 29.43% 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. DV Biomed Co
Performance |
| Timeline |
| Accton Technology Corp |
| DV Biomed |
Accton Technology and DV Biomed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Accton Technology and DV Biomed
The main advantage of trading using opposite Accton Technology and DV Biomed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Accton Technology position performs unexpectedly, DV Biomed 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 DV Biomed will offset losses from the drop in DV Biomed'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 |
| DV Biomed vs. Insyde Software | DV Biomed vs. Far EasTone Telecommunications | DV Biomed vs. TWOWAY Communications | DV Biomed vs. Union Insurance Co |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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