Correlation Between Walsin Technology and Logah Technology
Can any of the company-specific risk be diversified away by investing in both Walsin Technology and Logah Technology 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 Walsin Technology and Logah Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Walsin Technology Corp and Logah Technology Corp, you can compare the effects of market volatilities on Walsin Technology and Logah Technology 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 Walsin Technology with a short position of Logah Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walsin Technology and Logah Technology.
Diversification Opportunities for Walsin Technology and Logah Technology
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Walsin and Logah is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Walsin Technology Corp and Logah Technology Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Logah Technology Corp and Walsin 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 Walsin Technology Corp are associated (or correlated) with Logah Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Logah Technology Corp has no effect on the direction of Walsin Technology i.e., Walsin Technology and Logah Technology go up and down completely randomly.
Pair Corralation between Walsin Technology and Logah Technology
Assuming the 90 days trading horizon Walsin Technology Corp is expected to generate 0.73 times more return on investment than Logah Technology. However, Walsin Technology Corp is 1.38 times less risky than Logah Technology. It trades about 0.02 of its potential returns per unit of risk. Logah Technology Corp is currently generating about -0.03 per unit of risk. If you would invest 8,550 in Walsin Technology Corp on October 11, 2024 and sell it today you would earn a total of 850.00 from holding Walsin Technology Corp or generate 9.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.79% |
| Values | Daily Returns |
Walsin Technology Corp vs. Logah Technology Corp
Performance |
| Timeline |
| Walsin Technology Corp |
| Logah Technology Corp |
Walsin Technology and Logah Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walsin Technology and Logah Technology
The main advantage of trading using opposite Walsin Technology and Logah Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walsin Technology position performs unexpectedly, Logah Technology 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 Logah Technology will offset losses from the drop in Logah Technology's long position.| Walsin Technology vs. Yageo Corp | Walsin Technology vs. Nanya Technology Corp | Walsin Technology vs. Holy Stone Enterprise | Walsin Technology vs. Novatek Microelectronics Corp |
| Logah Technology vs. Holy Stone Enterprise | Logah Technology vs. Walsin Technology Corp | Logah Technology vs. Yageo Corp | Logah Technology vs. HannStar Board Corp |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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