Correlation Between Advantech and Antec
Can any of the company-specific risk be diversified away by investing in both Advantech and Antec 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 Antec into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Advantech Co and Antec Inc, you can compare the effects of market volatilities on Advantech and Antec 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 Antec. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advantech and Antec.
Diversification Opportunities for Advantech and Antec
Average diversification
The 3 months correlation between Advantech and Antec is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Advantech Co and Antec Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Antec Inc 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 Antec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Antec Inc has no effect on the direction of Advantech i.e., Advantech and Antec go up and down completely randomly.
Pair Corralation between Advantech and Antec
Assuming the 90 days trading horizon Advantech Co is expected to generate 0.98 times more return on investment than Antec. However, Advantech Co is 1.02 times less risky than Antec. It trades about 0.25 of its potential returns per unit of risk. Antec Inc is currently generating about -0.45 per unit of risk. If you would invest 32,000 in Advantech Co on August 29, 2024 and sell it today you would earn a total of 2,750 from holding Advantech Co or generate 8.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Advantech Co vs. Antec Inc
Performance |
| Timeline |
| Advantech |
| Antec Inc |
Advantech and Antec Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advantech and Antec
The main advantage of trading using opposite Advantech and Antec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advantech position performs unexpectedly, Antec 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 Antec will offset losses from the drop in Antec's long position.| Advantech vs. Delta Electronics | Advantech vs. Quanta Computer | Advantech vs. Realtek Semiconductor Corp | Advantech vs. President Chain Store |
| Antec vs. AVer Information | Antec vs. Dimerco Data System | Antec vs. U Media Communications | Antec vs. Otsuka Information Technology |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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