Correlation Between AVerMedia Technologies and SYN Tech
Can any of the company-specific risk be diversified away by investing in both AVerMedia Technologies and SYN Tech 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 SYN Tech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AVerMedia Technologies and SYN Tech Chem Pharm, you can compare the effects of market volatilities on AVerMedia Technologies and SYN Tech 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 SYN Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of AVerMedia Technologies and SYN Tech.
Diversification Opportunities for AVerMedia Technologies and SYN Tech
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between AVerMedia and SYN is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding AVerMedia Technologies and SYN Tech Chem Pharm in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SYN Tech Chem 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 SYN Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SYN Tech Chem has no effect on the direction of AVerMedia Technologies i.e., AVerMedia Technologies and SYN Tech go up and down completely randomly.
Pair Corralation between AVerMedia Technologies and SYN Tech
Assuming the 90 days trading horizon AVerMedia Technologies is expected to generate 2.71 times more return on investment than SYN Tech. However, AVerMedia Technologies is 2.71 times more volatile than SYN Tech Chem Pharm. It trades about 0.06 of its potential returns per unit of risk. SYN Tech Chem Pharm is currently generating about 0.04 per unit of risk. If you would invest 2,270 in AVerMedia Technologies on October 13, 2024 and sell it today you would earn a total of 2,365 from holding AVerMedia Technologies or generate 104.19% 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. SYN Tech Chem Pharm
Performance |
| Timeline |
| AVerMedia Technologies |
| SYN Tech Chem |
AVerMedia Technologies and SYN Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AVerMedia Technologies and SYN Tech
The main advantage of trading using opposite AVerMedia Technologies and SYN Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AVerMedia Technologies position performs unexpectedly, SYN Tech 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 SYN Tech will offset losses from the drop in SYN Tech's long position.| AVerMedia Technologies vs. Clevo Co | AVerMedia Technologies vs. Zinwell | AVerMedia Technologies vs. Gigastorage Corp | AVerMedia Technologies vs. Shuttle |
| SYN Tech vs. EirGenix | SYN Tech vs. Medigen Vaccine Biologics | SYN Tech vs. OBI Pharma | SYN Tech vs. TaiMed Biologics |
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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