Correlation Between Quanta Computer and Progate
Can any of the company-specific risk be diversified away by investing in both Quanta Computer and Progate 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 Quanta Computer and Progate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Quanta Computer and Progate Group, you can compare the effects of market volatilities on Quanta Computer and Progate 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 Quanta Computer with a short position of Progate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Quanta Computer and Progate.
Diversification Opportunities for Quanta Computer and Progate
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Quanta and Progate is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Quanta Computer and Progate Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Progate Group and Quanta 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 Quanta Computer are associated (or correlated) with Progate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Progate Group has no effect on the direction of Quanta Computer i.e., Quanta Computer and Progate go up and down completely randomly.
Pair Corralation between Quanta Computer and Progate
Assuming the 90 days trading horizon Quanta Computer is expected to generate 0.97 times more return on investment than Progate. However, Quanta Computer is 1.03 times less risky than Progate. It trades about 0.03 of its potential returns per unit of risk. Progate Group is currently generating about -0.12 per unit of risk. If you would invest 27,500 in Quanta Computer on September 2, 2024 and sell it today you would earn a total of 1,600 from holding Quanta Computer or generate 5.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Quanta Computer vs. Progate Group
Performance |
| Timeline |
| Quanta Computer |
| Progate Group |
Quanta Computer and Progate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Quanta Computer and Progate
The main advantage of trading using opposite Quanta Computer and Progate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Quanta Computer position performs unexpectedly, Progate 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 Progate will offset losses from the drop in Progate's long position.| Quanta Computer vs. Compal Electronics | Quanta Computer vs. Asustek Computer | Quanta Computer vs. Delta Electronics | Quanta Computer vs. Inventec Corp |
| Progate vs. Taiwan Semiconductor Manufacturing | Progate vs. Hon Hai Precision | Progate vs. MediaTek | Progate vs. Chunghwa Telecom 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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