Correlation Between G Shank and Audix Corp
Can any of the company-specific risk be diversified away by investing in both G Shank and Audix Corp 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 G Shank and Audix Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between G Shank Enterprise Co and Audix Corp, you can compare the effects of market volatilities on G Shank and Audix Corp 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 G Shank with a short position of Audix Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of G Shank and Audix Corp.
Diversification Opportunities for G Shank and Audix Corp
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between 2476 and Audix is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding G Shank Enterprise Co and Audix Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Audix Corp and G Shank 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 G Shank Enterprise Co are associated (or correlated) with Audix Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Audix Corp has no effect on the direction of G Shank i.e., G Shank and Audix Corp go up and down completely randomly.
Pair Corralation between G Shank and Audix Corp
Assuming the 90 days trading horizon G Shank Enterprise Co is expected to generate 2.49 times more return on investment than Audix Corp. However, G Shank is 2.49 times more volatile than Audix Corp. It trades about 0.08 of its potential returns per unit of risk. Audix Corp is currently generating about 0.06 per unit of risk. If you would invest 4,779 in G Shank Enterprise Co on September 12, 2024 and sell it today you would earn a total of 3,891 from holding G Shank Enterprise Co or generate 81.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.46% |
| Values | Daily Returns |
G Shank Enterprise Co vs. Audix Corp
Performance |
| Timeline |
| G Shank Enterprise |
| Audix Corp |
G Shank and Audix Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with G Shank and Audix Corp
The main advantage of trading using opposite G Shank and Audix Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if G Shank position performs unexpectedly, Audix Corp 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 Audix Corp will offset losses from the drop in Audix Corp's long position.| G Shank vs. Yang Ming Marine | G Shank vs. Wan Hai Lines | G Shank vs. U Ming Marine Transport | G Shank vs. Taiwan Navigation Co |
| Audix Corp vs. Stark Technology | Audix Corp vs. Elan Microelectronics Corp | Audix Corp vs. Greatek Electronics | Audix Corp vs. Zinwell |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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