Correlation Between Qisda Corp and Amtran Technology
Can any of the company-specific risk be diversified away by investing in both Qisda Corp and Amtran Technology 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 Qisda Corp and Amtran Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Qisda Corp and Amtran Technology Co, you can compare the effects of market volatilities on Qisda Corp and Amtran Technology 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 Qisda Corp with a short position of Amtran Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qisda Corp and Amtran Technology.
Diversification Opportunities for Qisda Corp and Amtran Technology
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Qisda and Amtran is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Qisda Corp and Amtran Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amtran Technology and Qisda Corp 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 Qisda Corp are associated (or correlated) with Amtran Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amtran Technology has no effect on the direction of Qisda Corp i.e., Qisda Corp and Amtran Technology go up and down completely randomly.
Pair Corralation between Qisda Corp and Amtran Technology
Assuming the 90 days trading horizon Qisda Corp is expected to generate 0.71 times more return on investment than Amtran Technology. However, Qisda Corp is 1.41 times less risky than Amtran Technology. It trades about 0.05 of its potential returns per unit of risk. Amtran Technology Co is currently generating about -0.19 per unit of risk. If you would invest 3,680 in Qisda Corp on August 29, 2024 and sell it today you would earn a total of 45.00 from holding Qisda Corp or generate 1.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qisda Corp vs. Amtran Technology Co
Performance |
| Timeline |
| Qisda Corp |
| Amtran Technology |
Qisda Corp and Amtran Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qisda Corp and Amtran Technology
The main advantage of trading using opposite Qisda Corp and Amtran Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qisda Corp position performs unexpectedly, Amtran Technology 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 Amtran Technology will offset losses from the drop in Amtran Technology's long position.| Qisda Corp vs. Sitronix Technology Corp | Qisda Corp vs. Elan Microelectronics Corp | Qisda Corp vs. Global Unichip Corp | Qisda Corp vs. Holtek Semiconductor |
| Amtran Technology vs. Yulon Finance Corp | Amtran Technology vs. Taiwan Secom Co | Amtran Technology vs. Great Wall Enterprise |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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