Correlation Between Asustek Computer and Elitegroup Computer
Can any of the company-specific risk be diversified away by investing in both Asustek Computer and Elitegroup Computer 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 Asustek Computer and Elitegroup Computer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asustek Computer and Elitegroup Computer Systems, you can compare the effects of market volatilities on Asustek Computer and Elitegroup Computer 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 Asustek Computer with a short position of Elitegroup Computer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asustek Computer and Elitegroup Computer.
Diversification Opportunities for Asustek Computer and Elitegroup Computer
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Asustek and Elitegroup is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Asustek Computer and Elitegroup Computer Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elitegroup Computer and Asustek Computer 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 Asustek Computer are associated (or correlated) with Elitegroup Computer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elitegroup Computer has no effect on the direction of Asustek Computer i.e., Asustek Computer and Elitegroup Computer go up and down completely randomly.
Pair Corralation between Asustek Computer and Elitegroup Computer
Assuming the 90 days trading horizon Asustek Computer is expected to generate 0.95 times more return on investment than Elitegroup Computer. However, Asustek Computer is 1.06 times less risky than Elitegroup Computer. It trades about 0.12 of its potential returns per unit of risk. Elitegroup Computer Systems is currently generating about -0.05 per unit of risk. If you would invest 53,900 in Asustek Computer on September 12, 2024 and sell it today you would earn a total of 6,500 from holding Asustek Computer or generate 12.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asustek Computer vs. Elitegroup Computer Systems
Performance |
| Timeline |
| Asustek Computer |
| Elitegroup Computer |
Asustek Computer and Elitegroup Computer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asustek Computer and Elitegroup Computer
The main advantage of trading using opposite Asustek Computer and Elitegroup Computer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asustek Computer position performs unexpectedly, Elitegroup Computer 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 Elitegroup Computer will offset losses from the drop in Elitegroup Computer's long position.| Asustek Computer vs. AU Optronics | Asustek Computer vs. Innolux Corp | Asustek Computer vs. Ruentex Development Co | Asustek Computer vs. WiseChip Semiconductor |
| Elitegroup Computer vs. Micro Star International Co | Elitegroup Computer vs. Gigabyte Technology Co | Elitegroup Computer vs. Compal Electronics | Elitegroup Computer vs. VIA Technologies |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Stocks Directory Find actively traded stocks across global markets | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |