Correlation Between Amtran Technology and D Link
Can any of the company-specific risk be diversified away by investing in both Amtran Technology and D Link 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 Amtran Technology and D Link into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amtran Technology Co and D Link Corp, you can compare the effects of market volatilities on Amtran Technology and D Link 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 Amtran Technology with a short position of D Link. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amtran Technology and D Link.
Diversification Opportunities for Amtran Technology and D Link
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Amtran and 2332 is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Amtran Technology Co and D Link Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on D Link Corp and Amtran Technology 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 Amtran Technology Co are associated (or correlated) with D Link. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of D Link Corp has no effect on the direction of Amtran Technology i.e., Amtran Technology and D Link go up and down completely randomly.
Pair Corralation between Amtran Technology and D Link
Assuming the 90 days trading horizon Amtran Technology Co is expected to generate 1.36 times more return on investment than D Link. However, Amtran Technology is 1.36 times more volatile than D Link Corp. It trades about 0.05 of its potential returns per unit of risk. D Link Corp is currently generating about 0.02 per unit of risk. If you would invest 1,395 in Amtran Technology Co on August 31, 2024 and sell it today you would earn a total of 560.00 from holding Amtran Technology Co or generate 40.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amtran Technology Co vs. D Link Corp
Performance |
| Timeline |
| Amtran Technology |
| D Link Corp |
Amtran Technology and D Link Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amtran Technology and D Link
The main advantage of trading using opposite Amtran Technology and D Link positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amtran Technology position performs unexpectedly, D Link 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 D Link will offset losses from the drop in D Link's long position.| Amtran Technology vs. Bright Led Electronics | Amtran Technology vs. Grand Plastic Technology | Amtran Technology vs. BenQ Materials Corp | Amtran Technology vs. First Insurance Co |
| D Link vs. Accton Technology Corp | D Link vs. Compal Electronics | D Link vs. Qisda Corp | D Link vs. Macronix International Co |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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