Correlation Between Asustek Computer and Bioteque
Can any of the company-specific risk be diversified away by investing in both Asustek Computer and Bioteque 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 Bioteque into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asustek Computer and Bioteque, you can compare the effects of market volatilities on Asustek Computer and Bioteque 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 Bioteque. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asustek Computer and Bioteque.
Diversification Opportunities for Asustek Computer and Bioteque
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Asustek and Bioteque is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Asustek Computer and Bioteque in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bioteque 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 Bioteque. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bioteque has no effect on the direction of Asustek Computer i.e., Asustek Computer and Bioteque go up and down completely randomly.
Pair Corralation between Asustek Computer and Bioteque
Assuming the 90 days trading horizon Asustek Computer is expected to generate 2.81 times more return on investment than Bioteque. However, Asustek Computer is 2.81 times more volatile than Bioteque. It trades about 0.11 of its potential returns per unit of risk. Bioteque is currently generating about -0.13 per unit of risk. If you would invest 55,300 in Asustek Computer on August 30, 2024 and sell it today you would earn a total of 4,100 from holding Asustek Computer or generate 7.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asustek Computer vs. Bioteque
Performance |
| Timeline |
| Asustek Computer |
| Bioteque |
Asustek Computer and Bioteque Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asustek Computer and Bioteque
The main advantage of trading using opposite Asustek Computer and Bioteque positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asustek Computer position performs unexpectedly, Bioteque 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 Bioteque will offset losses from the drop in Bioteque's long position.| Asustek Computer vs. Quanta Computer | Asustek Computer vs. Acer Inc | Asustek Computer vs. United Microelectronics | Asustek Computer vs. Compal Electronics |
| Bioteque vs. StShine Optical Co | Bioteque vs. United Orthopedic | Bioteque vs. Excelsior Medical Co | Bioteque vs. Pacific Hospital Supply |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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