Correlation Between Asustek Computer and Sunfar Computer
Can any of the company-specific risk be diversified away by investing in both Asustek Computer and Sunfar 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 Sunfar 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 Sunfar Computer Co, you can compare the effects of market volatilities on Asustek Computer and Sunfar 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 Sunfar Computer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asustek Computer and Sunfar Computer.
Diversification Opportunities for Asustek Computer and Sunfar Computer
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Asustek and Sunfar is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Asustek Computer and Sunfar Computer Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sunfar 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 Sunfar Computer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sunfar Computer has no effect on the direction of Asustek Computer i.e., Asustek Computer and Sunfar Computer go up and down completely randomly.
Pair Corralation between Asustek Computer and Sunfar Computer
Assuming the 90 days trading horizon Asustek Computer is expected to generate 2.32 times more return on investment than Sunfar Computer. However, Asustek Computer is 2.32 times more volatile than Sunfar Computer Co. It trades about -0.01 of its potential returns per unit of risk. Sunfar Computer Co is currently generating about -0.04 per unit of risk. If you would invest 61,200 in Asustek Computer on September 13, 2024 and sell it today you would lose (400.00) from holding Asustek Computer or give up 0.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asustek Computer vs. Sunfar Computer Co
Performance |
| Timeline |
| Asustek Computer |
| Sunfar Computer |
Asustek Computer and Sunfar Computer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asustek Computer and Sunfar Computer
The main advantage of trading using opposite Asustek Computer and Sunfar Computer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asustek Computer position performs unexpectedly, Sunfar 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 Sunfar Computer will offset losses from the drop in Sunfar 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 |
| Sunfar Computer vs. Healthconn Corp | Sunfar Computer vs. International CSRC Investment | Sunfar Computer vs. Grand Ocean Retail | Sunfar Computer vs. An Shin Food Services |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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