Correlation Between AU Optronics and Apex Biotechnology
Can any of the company-specific risk be diversified away by investing in both AU Optronics and Apex Biotechnology 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 AU Optronics and Apex Biotechnology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AU Optronics and Apex Biotechnology Corp, you can compare the effects of market volatilities on AU Optronics and Apex Biotechnology 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 AU Optronics with a short position of Apex Biotechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of AU Optronics and Apex Biotechnology.
Diversification Opportunities for AU Optronics and Apex Biotechnology
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between 2409 and Apex is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding AU Optronics and Apex Biotechnology Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apex Biotechnology Corp and AU Optronics 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 AU Optronics are associated (or correlated) with Apex Biotechnology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apex Biotechnology Corp has no effect on the direction of AU Optronics i.e., AU Optronics and Apex Biotechnology go up and down completely randomly.
Pair Corralation between AU Optronics and Apex Biotechnology
Assuming the 90 days trading horizon AU Optronics is expected to generate 1.36 times more return on investment than Apex Biotechnology. However, AU Optronics is 1.36 times more volatile than Apex Biotechnology Corp. It trades about 0.33 of its potential returns per unit of risk. Apex Biotechnology Corp is currently generating about -0.02 per unit of risk. If you would invest 1,375 in AU Optronics on November 27, 2024 and sell it today you would earn a total of 130.00 from holding AU Optronics or generate 9.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AU Optronics vs. Apex Biotechnology Corp
Performance |
| Timeline |
| AU Optronics |
| Apex Biotechnology Corp |
AU Optronics and Apex Biotechnology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AU Optronics and Apex Biotechnology
The main advantage of trading using opposite AU Optronics and Apex Biotechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AU Optronics position performs unexpectedly, Apex Biotechnology 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 Apex Biotechnology will offset losses from the drop in Apex Biotechnology's long position.| AU Optronics vs. Innolux Corp | AU Optronics vs. United Microelectronics | AU Optronics vs. China Steel Corp | AU Optronics vs. Quanta Computer |
| Apex Biotechnology vs. Grape King Bio | Apex Biotechnology vs. Standard Chemical Pharmaceutical | Apex Biotechnology vs. China Steel Chemical | Apex Biotechnology vs. Sinphar Pharmaceutical 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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