Correlation Between Shuttle and Biostar Microtech
Can any of the company-specific risk be diversified away by investing in both Shuttle and Biostar Microtech 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 Shuttle and Biostar Microtech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shuttle and Biostar Microtech International, you can compare the effects of market volatilities on Shuttle and Biostar Microtech 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 Shuttle with a short position of Biostar Microtech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shuttle and Biostar Microtech.
Diversification Opportunities for Shuttle and Biostar Microtech
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Shuttle and Biostar is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Shuttle and Biostar Microtech Internationa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Biostar Microtech and Shuttle 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 Shuttle are associated (or correlated) with Biostar Microtech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Biostar Microtech has no effect on the direction of Shuttle i.e., Shuttle and Biostar Microtech go up and down completely randomly.
Pair Corralation between Shuttle and Biostar Microtech
Assuming the 90 days trading horizon Shuttle is expected to under-perform the Biostar Microtech. But the stock apears to be less risky and, when comparing its historical volatility, Shuttle is 1.5 times less risky than Biostar Microtech. The stock trades about -0.25 of its potential returns per unit of risk. The Biostar Microtech International is currently generating about -0.11 of returns per unit of risk over similar time horizon. If you would invest 2,640 in Biostar Microtech International on October 24, 2024 and sell it today you would lose (170.00) from holding Biostar Microtech International or give up 6.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shuttle vs. Biostar Microtech Internationa
Performance |
| Timeline |
| Shuttle |
| Biostar Microtech |
Shuttle and Biostar Microtech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shuttle and Biostar Microtech
The main advantage of trading using opposite Shuttle and Biostar Microtech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shuttle position performs unexpectedly, Biostar Microtech 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 Biostar Microtech will offset losses from the drop in Biostar Microtech's long position.| Shuttle vs. Clevo Co | Shuttle vs. Gigastorage Corp | Shuttle vs. KYE Systems Corp | Shuttle vs. AVerMedia Technologies |
| Biostar Microtech vs. Elitegroup Computer Systems | Biostar Microtech vs. Gigabyte Technology Co | Biostar Microtech vs. Micro Star International Co | Biostar Microtech vs. Shuttle |
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.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |