Correlation Between Getac Technology and Emerging Display
Can any of the company-specific risk be diversified away by investing in both Getac Technology and Emerging Display 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 Getac Technology and Emerging Display into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Getac Technology Corp and Emerging Display Technologies, you can compare the effects of market volatilities on Getac Technology and Emerging Display 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 Getac Technology with a short position of Emerging Display. Check out your portfolio center. Please also check ongoing floating volatility patterns of Getac Technology and Emerging Display.
Diversification Opportunities for Getac Technology and Emerging Display
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Getac and Emerging is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Getac Technology Corp and Emerging Display Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emerging Display Tec and Getac 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 Getac Technology Corp are associated (or correlated) with Emerging Display. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emerging Display Tec has no effect on the direction of Getac Technology i.e., Getac Technology and Emerging Display go up and down completely randomly.
Pair Corralation between Getac Technology and Emerging Display
Assuming the 90 days trading horizon Getac Technology is expected to generate 1.98 times less return on investment than Emerging Display. In addition to that, Getac Technology is 1.56 times more volatile than Emerging Display Technologies. It trades about 0.21 of its total potential returns per unit of risk. Emerging Display Technologies is currently generating about 0.64 per unit of volatility. If you would invest 2,635 in Emerging Display Technologies on November 28, 2024 and sell it today you would earn a total of 275.00 from holding Emerging Display Technologies or generate 10.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Getac Technology Corp vs. Emerging Display Technologies
Performance |
| Timeline |
| Getac Technology Corp |
| Emerging Display Tec |
Getac Technology and Emerging Display Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Getac Technology and Emerging Display
The main advantage of trading using opposite Getac Technology and Emerging Display positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Getac Technology position performs unexpectedly, Emerging Display 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 Emerging Display will offset losses from the drop in Emerging Display's long position.| Getac Technology vs. Chicony Electronics Co | Getac Technology vs. Inventec Corp | Getac Technology vs. Synnex Technology International | Getac Technology vs. Micro Star International Co |
| Emerging Display vs. Microelectronics Technology | Emerging Display vs. Bright Led Electronics | Emerging Display vs. Taiwan Chinsan Electronic | Emerging Display vs. China Petrochemical Development |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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