Correlation Between Avision and Zig Sheng
Can any of the company-specific risk be diversified away by investing in both Avision and Zig Sheng 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 Avision and Zig Sheng into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Avision and Zig Sheng Industrial, you can compare the effects of market volatilities on Avision and Zig Sheng 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 Avision with a short position of Zig Sheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Avision and Zig Sheng.
Diversification Opportunities for Avision and Zig Sheng
Very weak diversification
The 3 months correlation between Avision and Zig is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Avision and Zig Sheng Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zig Sheng Industrial and Avision 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 Avision are associated (or correlated) with Zig Sheng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zig Sheng Industrial has no effect on the direction of Avision i.e., Avision and Zig Sheng go up and down completely randomly.
Pair Corralation between Avision and Zig Sheng
Assuming the 90 days trading horizon Avision is expected to under-perform the Zig Sheng. In addition to that, Avision is 4.05 times more volatile than Zig Sheng Industrial. It trades about -0.23 of its total potential returns per unit of risk. Zig Sheng Industrial is currently generating about -0.1 per unit of volatility. If you would invest 1,025 in Zig Sheng Industrial on September 1, 2024 and sell it today you would lose (25.00) from holding Zig Sheng Industrial or give up 2.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Avision vs. Zig Sheng Industrial
Performance |
| Timeline |
| Avision |
| Zig Sheng Industrial |
Avision and Zig Sheng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Avision and Zig Sheng
The main advantage of trading using opposite Avision and Zig Sheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Avision position performs unexpectedly, Zig Sheng 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 Zig Sheng will offset losses from the drop in Zig Sheng's long position.| Avision vs. KYE Systems Corp | Avision vs. Clevo Co | Avision vs. Silicon Integrated Systems | Avision vs. Ability Enterprise Co |
| Zig Sheng vs. Chaintech Technology Corp | Zig Sheng vs. AVerMedia Technologies | Zig Sheng vs. Avision | Zig Sheng vs. Clevo Co |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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