Correlation Between AVerMedia Technologies and Run Long
Can any of the company-specific risk be diversified away by investing in both AVerMedia Technologies and Run Long 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 Run Long into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AVerMedia Technologies and Run Long Construction, you can compare the effects of market volatilities on AVerMedia Technologies and Run Long 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 Run Long. Check out your portfolio center. Please also check ongoing floating volatility patterns of AVerMedia Technologies and Run Long.
Diversification Opportunities for AVerMedia Technologies and Run Long
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AVerMedia and Run is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding AVerMedia Technologies and Run Long Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Run Long Construction 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 Run Long. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Run Long Construction has no effect on the direction of AVerMedia Technologies i.e., AVerMedia Technologies and Run Long go up and down completely randomly.
Pair Corralation between AVerMedia Technologies and Run Long
Assuming the 90 days trading horizon AVerMedia Technologies is expected to generate 0.75 times more return on investment than Run Long. However, AVerMedia Technologies is 1.33 times less risky than Run Long. It trades about 0.02 of its potential returns per unit of risk. Run Long Construction is currently generating about -0.04 per unit of risk. If you would invest 3,870 in AVerMedia Technologies on September 4, 2024 and sell it today you would earn a total of 190.00 from holding AVerMedia Technologies or generate 4.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AVerMedia Technologies vs. Run Long Construction
Performance |
| Timeline |
| AVerMedia Technologies |
| Run Long Construction |
AVerMedia Technologies and Run Long Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AVerMedia Technologies and Run Long
The main advantage of trading using opposite AVerMedia Technologies and Run Long positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AVerMedia Technologies position performs unexpectedly, Run Long 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 Run Long will offset losses from the drop in Run Long's long position.| AVerMedia Technologies vs. Tainan Spinning Co | AVerMedia Technologies vs. Chia Her Industrial | AVerMedia Technologies vs. WiseChip Semiconductor | AVerMedia Technologies vs. Novatek Microelectronics Corp |
| Run Long vs. Universal Microelectronics Co | Run Long vs. AVerMedia Technologies | Run Long vs. Symtek Automation Asia | Run Long vs. WiseChip Semiconductor |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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