Correlation Between Amtran Technology and Qisda Corp
Can any of the company-specific risk be diversified away by investing in both Amtran Technology and Qisda 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 Amtran Technology and Qisda Corp 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 Qisda Corp, you can compare the effects of market volatilities on Amtran Technology and Qisda 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 Amtran Technology with a short position of Qisda Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amtran Technology and Qisda Corp.
Diversification Opportunities for Amtran Technology and Qisda Corp
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Amtran and Qisda is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Amtran Technology Co and Qisda Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qisda 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 Qisda Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qisda Corp has no effect on the direction of Amtran Technology i.e., Amtran Technology and Qisda Corp go up and down completely randomly.
Pair Corralation between Amtran Technology and Qisda Corp
Assuming the 90 days trading horizon Amtran Technology Co is expected to under-perform the Qisda Corp. In addition to that, Amtran Technology is 1.55 times more volatile than Qisda Corp. It trades about -0.17 of its total potential returns per unit of risk. Qisda Corp is currently generating about 0.11 per unit of volatility. If you would invest 3,600 in Qisda Corp on September 1, 2024 and sell it today you would earn a total of 95.00 from holding Qisda Corp or generate 2.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amtran Technology Co vs. Qisda Corp
Performance |
| Timeline |
| Amtran Technology |
| Qisda Corp |
Amtran Technology and Qisda Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amtran Technology and Qisda Corp
The main advantage of trading using opposite Amtran Technology and Qisda Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amtran Technology position performs unexpectedly, Qisda 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 Qisda Corp will offset losses from the drop in Qisda Corp's long position.| Amtran Technology vs. Chaintech Technology Corp | Amtran Technology vs. AVerMedia Technologies | Amtran Technology vs. Avision | Amtran Technology vs. Clevo 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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