Correlation Between AVerMedia Technologies and Min Aik
Can any of the company-specific risk be diversified away by investing in both AVerMedia Technologies and Min Aik 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 Min Aik into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AVerMedia Technologies and Min Aik Technology, you can compare the effects of market volatilities on AVerMedia Technologies and Min Aik 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 Min Aik. Check out your portfolio center. Please also check ongoing floating volatility patterns of AVerMedia Technologies and Min Aik.
Diversification Opportunities for AVerMedia Technologies and Min Aik
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between AVerMedia and Min is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding AVerMedia Technologies and Min Aik Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Min Aik Technology 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 Min Aik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Min Aik Technology has no effect on the direction of AVerMedia Technologies i.e., AVerMedia Technologies and Min Aik go up and down completely randomly.
Pair Corralation between AVerMedia Technologies and Min Aik
Assuming the 90 days trading horizon AVerMedia Technologies is expected to generate 0.68 times more return on investment than Min Aik. However, AVerMedia Technologies is 1.48 times less risky than Min Aik. It trades about 0.09 of its potential returns per unit of risk. Min Aik Technology is currently generating about -0.25 per unit of risk. If you would invest 3,990 in AVerMedia Technologies on September 3, 2024 and sell it today you would earn a total of 120.00 from holding AVerMedia Technologies or generate 3.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AVerMedia Technologies vs. Min Aik Technology
Performance |
| Timeline |
| AVerMedia Technologies |
| Min Aik Technology |
AVerMedia Technologies and Min Aik Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AVerMedia Technologies and Min Aik
The main advantage of trading using opposite AVerMedia Technologies and Min Aik positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AVerMedia Technologies position performs unexpectedly, Min Aik 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 Min Aik will offset losses from the drop in Min Aik's long position.| AVerMedia Technologies vs. Clevo Co | AVerMedia Technologies vs. Zinwell | AVerMedia Technologies vs. Gigastorage Corp | AVerMedia Technologies vs. Shuttle |
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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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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