Correlation Between Avision and I Hwa
Can any of the company-specific risk be diversified away by investing in both Avision and I Hwa 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 I Hwa into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Avision and I Hwa Industrial Co, you can compare the effects of market volatilities on Avision and I Hwa 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 I Hwa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Avision and I Hwa.
Diversification Opportunities for Avision and I Hwa
Weak diversification
The 3 months correlation between Avision and 1456 is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Avision and I Hwa Industrial Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on I Hwa 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 I Hwa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of I Hwa Industrial has no effect on the direction of Avision i.e., Avision and I Hwa go up and down completely randomly.
Pair Corralation between Avision and I Hwa
Assuming the 90 days trading horizon Avision is expected to under-perform the I Hwa. In addition to that, Avision is 2.01 times more volatile than I Hwa Industrial Co. It trades about -0.23 of its total potential returns per unit of risk. I Hwa Industrial Co is currently generating about 0.0 per unit of volatility. If you would invest 1,780 in I Hwa Industrial Co on September 3, 2024 and sell it today you would lose (10.00) from holding I Hwa Industrial Co or give up 0.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Avision vs. I Hwa Industrial Co
Performance |
| Timeline |
| Avision |
| I Hwa Industrial |
Avision and I Hwa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Avision and I Hwa
The main advantage of trading using opposite Avision and I Hwa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Avision position performs unexpectedly, I Hwa 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 I Hwa will offset losses from the drop in I Hwa's long position.| Avision vs. KYE Systems Corp | Avision vs. Clevo Co | Avision vs. Silicon Integrated Systems | Avision vs. Ability Enterprise Co |
| I Hwa vs. Tainan Spinning Co | I Hwa vs. Chia Her Industrial | I Hwa vs. WiseChip Semiconductor | I Hwa vs. Novatek Microelectronics Corp |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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