Correlation Between AVerMedia Technologies and Tong Yang
Can any of the company-specific risk be diversified away by investing in both AVerMedia Technologies and Tong Yang 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 AVerMedia Technologies and Tong Yang into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AVerMedia Technologies and Tong Yang Industry, you can compare the effects of market volatilities on AVerMedia Technologies and Tong Yang 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 AVerMedia Technologies with a short position of Tong Yang. Check out your portfolio center. Please also check ongoing floating volatility patterns of AVerMedia Technologies and Tong Yang.
Diversification Opportunities for AVerMedia Technologies and Tong Yang
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between AVerMedia and Tong is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding AVerMedia Technologies and Tong Yang Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tong Yang Industry and AVerMedia Technologies 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 AVerMedia Technologies are associated (or correlated) with Tong Yang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tong Yang Industry has no effect on the direction of AVerMedia Technologies i.e., AVerMedia Technologies and Tong Yang go up and down completely randomly.
Pair Corralation between AVerMedia Technologies and Tong Yang
Assuming the 90 days trading horizon AVerMedia Technologies is expected to generate 8.68 times less return on investment than Tong Yang. In addition to that, AVerMedia Technologies is 1.0 times more volatile than Tong Yang Industry. It trades about 0.03 of its total potential returns per unit of risk. Tong Yang Industry is currently generating about 0.24 per unit of volatility. If you would invest 10,850 in Tong Yang Industry on September 2, 2024 and sell it today you would earn a total of 1,000.00 from holding Tong Yang Industry or generate 9.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AVerMedia Technologies vs. Tong Yang Industry
Performance |
| Timeline |
| AVerMedia Technologies |
| Tong Yang Industry |
AVerMedia Technologies and Tong Yang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AVerMedia Technologies and Tong Yang
The main advantage of trading using opposite AVerMedia Technologies and Tong Yang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AVerMedia Technologies position performs unexpectedly, Tong Yang 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 Tong Yang will offset losses from the drop in Tong Yang's long position.| AVerMedia Technologies vs. Chaintech Technology Corp | AVerMedia Technologies vs. Avision | AVerMedia Technologies vs. Clevo Co | AVerMedia Technologies vs. Elitegroup Computer Systems |
| Tong Yang vs. TYC Brother Industrial | Tong Yang vs. Hota Industrial Mfg | Tong Yang vs. Yulon Motor Co | Tong Yang vs. Far Eastern New |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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