Correlation Between Amtran Technology and P Duke
Can any of the company-specific risk be diversified away by investing in both Amtran Technology and P Duke 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 P Duke 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 P Duke Technology Co, you can compare the effects of market volatilities on Amtran Technology and P Duke 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 P Duke. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amtran Technology and P Duke.
Diversification Opportunities for Amtran Technology and P Duke
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Amtran and 8109 is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Amtran Technology Co and P Duke Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on P Duke Technology 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 P Duke. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of P Duke Technology has no effect on the direction of Amtran Technology i.e., Amtran Technology and P Duke go up and down completely randomly.
Pair Corralation between Amtran Technology and P Duke
Assuming the 90 days trading horizon Amtran Technology Co is expected to under-perform the P Duke. In addition to that, Amtran Technology is 4.24 times more volatile than P Duke Technology Co. It trades about -0.27 of its total potential returns per unit of risk. P Duke Technology Co is currently generating about -0.18 per unit of volatility. If you would invest 8,800 in P Duke Technology Co on August 26, 2024 and sell it today you would lose (130.00) from holding P Duke Technology Co or give up 1.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amtran Technology Co vs. P Duke Technology Co
Performance |
| Timeline |
| Amtran Technology |
| P Duke Technology |
Amtran Technology and P Duke Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amtran Technology and P Duke
The main advantage of trading using opposite Amtran Technology and P Duke positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amtran Technology position performs unexpectedly, P Duke 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 P Duke will offset losses from the drop in P Duke's long position.| Amtran Technology vs. Taiwan Semiconductor Manufacturing | Amtran Technology vs. Hon Hai Precision | Amtran Technology vs. MediaTek | Amtran Technology vs. Chunghwa Telecom Co |
| P Duke vs. Walsin Lihwa Corp | P Duke vs. Ta Ya Electric | P Duke vs. Hiwin Mikrosystem Corp | P Duke vs. Amtran Technology 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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