Correlation Between Synnex Technology and AU Optronics
Can any of the company-specific risk be diversified away by investing in both Synnex Technology and AU Optronics 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 Synnex Technology and AU Optronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Synnex Technology International and AU Optronics, you can compare the effects of market volatilities on Synnex Technology and AU Optronics 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 Synnex Technology with a short position of AU Optronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Synnex Technology and AU Optronics.
Diversification Opportunities for Synnex Technology and AU Optronics
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Synnex and 2409 is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Synnex Technology Internationa and AU Optronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AU Optronics and Synnex 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 Synnex Technology International are associated (or correlated) with AU Optronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AU Optronics has no effect on the direction of Synnex Technology i.e., Synnex Technology and AU Optronics go up and down completely randomly.
Pair Corralation between Synnex Technology and AU Optronics
If you would invest 6,880 in Synnex Technology International on September 12, 2024 and sell it today you would earn a total of 520.00 from holding Synnex Technology International or generate 7.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Synnex Technology Internationa vs. AU Optronics
Performance |
| Timeline |
| Synnex Technology |
| AU Optronics |
Synnex Technology and AU Optronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Synnex Technology and AU Optronics
The main advantage of trading using opposite Synnex Technology and AU Optronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Synnex Technology position performs unexpectedly, AU Optronics 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 AU Optronics will offset losses from the drop in AU Optronics' long position.| Synnex Technology vs. AU Optronics | Synnex Technology vs. Innolux Corp | Synnex Technology vs. Ruentex Development Co | Synnex Technology vs. WiseChip Semiconductor |
| AU Optronics vs. Innolux Corp | AU Optronics vs. Ruentex Development Co | AU Optronics vs. WiseChip Semiconductor | AU Optronics vs. Novatek Microelectronics Corp |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |