Correlation Between Asustek Computer and Kee Tai
Can any of the company-specific risk be diversified away by investing in both Asustek Computer and Kee Tai 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 Kee Tai into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asustek Computer and Kee Tai Properties, you can compare the effects of market volatilities on Asustek Computer and Kee Tai 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 Kee Tai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asustek Computer and Kee Tai.
Diversification Opportunities for Asustek Computer and Kee Tai
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Asustek and Kee is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Asustek Computer and Kee Tai Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kee Tai Properties 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 Kee Tai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kee Tai Properties has no effect on the direction of Asustek Computer i.e., Asustek Computer and Kee Tai go up and down completely randomly.
Pair Corralation between Asustek Computer and Kee Tai
Assuming the 90 days trading horizon Asustek Computer is expected to generate 1.24 times more return on investment than Kee Tai. However, Asustek Computer is 1.24 times more volatile than Kee Tai Properties. It trades about 0.05 of its potential returns per unit of risk. Kee Tai Properties is currently generating about -0.2 per unit of risk. If you would invest 55,600 in Asustek Computer on August 31, 2024 and sell it today you would earn a total of 2,500 from holding Asustek Computer or generate 4.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asustek Computer vs. Kee Tai Properties
Performance |
| Timeline |
| Asustek Computer |
| Kee Tai Properties |
Asustek Computer and Kee Tai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asustek Computer and Kee Tai
The main advantage of trading using opposite Asustek Computer and Kee Tai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asustek Computer position performs unexpectedly, Kee Tai 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 Kee Tai will offset losses from the drop in Kee Tai's long position.| Asustek Computer vs. Quanta Computer | Asustek Computer vs. Acer Inc | Asustek Computer vs. United Microelectronics | Asustek Computer vs. Compal Electronics |
| Kee Tai vs. Hung Sheng Construction | Kee Tai vs. Chainqui Construction Development | Kee Tai vs. BES Engineering Co | Kee Tai vs. Long Bon International |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |