Correlation Between Advantech and Getac Technology
Can any of the company-specific risk be diversified away by investing in both Advantech and Getac Technology 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 Advantech and Getac Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Advantech Co and Getac Technology Corp, you can compare the effects of market volatilities on Advantech and Getac Technology 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 Advantech with a short position of Getac Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advantech and Getac Technology.
Diversification Opportunities for Advantech and Getac Technology
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Advantech and Getac is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Advantech Co and Getac Technology Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Getac Technology Corp and Advantech 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 Advantech Co are associated (or correlated) with Getac Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Getac Technology Corp has no effect on the direction of Advantech i.e., Advantech and Getac Technology go up and down completely randomly.
Pair Corralation between Advantech and Getac Technology
Assuming the 90 days trading horizon Advantech Co is expected to generate 0.96 times more return on investment than Getac Technology. However, Advantech Co is 1.04 times less risky than Getac Technology. It trades about 0.0 of its potential returns per unit of risk. Getac Technology Corp is currently generating about -0.07 per unit of risk. If you would invest 34,900 in Advantech Co on August 30, 2024 and sell it today you would lose (250.00) from holding Advantech Co or give up 0.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Advantech Co vs. Getac Technology Corp
Performance |
| Timeline |
| Advantech |
| Getac Technology Corp |
Advantech and Getac Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advantech and Getac Technology
The main advantage of trading using opposite Advantech and Getac Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advantech position performs unexpectedly, Getac Technology 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 Getac Technology will offset losses from the drop in Getac Technology's long position.| Advantech vs. Delta Electronics | Advantech vs. Quanta Computer | Advantech vs. Realtek Semiconductor Corp | Advantech vs. President Chain Store |
| Getac Technology vs. Chicony Electronics Co | Getac Technology vs. Inventec Corp | Getac Technology vs. Synnex Technology International | Getac Technology vs. Micro Star International 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |