Correlation Between AU Optronics and Posiflex Technology
Can any of the company-specific risk be diversified away by investing in both AU Optronics and Posiflex 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 AU Optronics and Posiflex Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AU Optronics and Posiflex Technology, you can compare the effects of market volatilities on AU Optronics and Posiflex 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 AU Optronics with a short position of Posiflex Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of AU Optronics and Posiflex Technology.
Diversification Opportunities for AU Optronics and Posiflex Technology
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 2409 and Posiflex is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding AU Optronics and Posiflex Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Posiflex Technology 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 Posiflex Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Posiflex Technology has no effect on the direction of AU Optronics i.e., AU Optronics and Posiflex Technology go up and down completely randomly.
Pair Corralation between AU Optronics and Posiflex Technology
Assuming the 90 days trading horizon AU Optronics is expected to generate 9.57 times less return on investment than Posiflex Technology. But when comparing it to its historical volatility, AU Optronics is 1.16 times less risky than Posiflex Technology. It trades about 0.01 of its potential returns per unit of risk. Posiflex Technology is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 11,450 in Posiflex Technology on September 4, 2024 and sell it today you would earn a total of 20,200 from holding Posiflex Technology or generate 176.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AU Optronics vs. Posiflex Technology
Performance |
| Timeline |
| AU Optronics |
| Posiflex Technology |
AU Optronics and Posiflex Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AU Optronics and Posiflex Technology
The main advantage of trading using opposite AU Optronics and Posiflex Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AU Optronics position performs unexpectedly, Posiflex 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 Posiflex Technology will offset losses from the drop in Posiflex Technology's long position.| AU Optronics vs. Innolux Corp | AU Optronics vs. United Microelectronics | AU Optronics vs. China Steel Corp | AU Optronics vs. Quanta Computer |
| Posiflex Technology vs. Taiwan Semiconductor Manufacturing | Posiflex Technology vs. Yang Ming Marine | Posiflex Technology vs. ASE Industrial Holding | Posiflex Technology vs. AU Optronics |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Stocks Directory Find actively traded stocks across global markets |