Correlation Between AVerMedia Technologies and AV Tech
Can any of the company-specific risk be diversified away by investing in both AVerMedia Technologies and AV 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 AV 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 AV Tech Corp, you can compare the effects of market volatilities on AVerMedia Technologies and AV 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 AV Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of AVerMedia Technologies and AV Tech.
Diversification Opportunities for AVerMedia Technologies and AV Tech
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between AVerMedia and 8072 is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding AVerMedia Technologies and AV Tech Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AV Tech Corp 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 AV Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AV Tech Corp has no effect on the direction of AVerMedia Technologies i.e., AVerMedia Technologies and AV Tech go up and down completely randomly.
Pair Corralation between AVerMedia Technologies and AV Tech
Assuming the 90 days trading horizon AVerMedia Technologies is expected to generate 2.37 times more return on investment than AV Tech. However, AVerMedia Technologies is 2.37 times more volatile than AV Tech Corp. It trades about 0.13 of its potential returns per unit of risk. AV Tech Corp is currently generating about 0.22 per unit of risk. If you would invest 4,855 in AVerMedia Technologies on November 28, 2024 and sell it today you would earn a total of 325.00 from holding AVerMedia Technologies or generate 6.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AVerMedia Technologies vs. AV Tech Corp
Performance |
| Timeline |
| AVerMedia Technologies |
| AV Tech Corp |
AVerMedia Technologies and AV Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AVerMedia Technologies and AV Tech
The main advantage of trading using opposite AVerMedia Technologies and AV Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AVerMedia Technologies position performs unexpectedly, AV 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 AV Tech will offset losses from the drop in AV Tech's long position.| AVerMedia Technologies vs. Clevo Co | AVerMedia Technologies vs. Zinwell | AVerMedia Technologies vs. Gigastorage Corp | AVerMedia Technologies vs. Shuttle |
| AV Tech vs. AVerMedia Technologies | AV Tech vs. Zinwell | AV Tech vs. In Win Development | AV Tech vs. Chenming Mold Industrial |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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