Correlation Between Getac Technology and Thermaltake Technology
Can any of the company-specific risk be diversified away by investing in both Getac Technology and Thermaltake 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 Getac Technology and Thermaltake Technology 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 Thermaltake Technology Co, you can compare the effects of market volatilities on Getac Technology and Thermaltake 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 Getac Technology with a short position of Thermaltake Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Getac Technology and Thermaltake Technology.
Diversification Opportunities for Getac Technology and Thermaltake Technology
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Getac and Thermaltake is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Getac Technology Corp and Thermaltake Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thermaltake Technology 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 Thermaltake Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thermaltake Technology has no effect on the direction of Getac Technology i.e., Getac Technology and Thermaltake Technology go up and down completely randomly.
Pair Corralation between Getac Technology and Thermaltake Technology
Assuming the 90 days trading horizon Getac Technology Corp is expected to under-perform the Thermaltake Technology. But the stock apears to be less risky and, when comparing its historical volatility, Getac Technology Corp is 1.1 times less risky than Thermaltake Technology. The stock trades about -0.05 of its potential returns per unit of risk. The Thermaltake Technology Co is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 4,030 in Thermaltake Technology Co on August 28, 2024 and sell it today you would lose (225.00) from holding Thermaltake Technology Co or give up 5.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Getac Technology Corp vs. Thermaltake Technology Co
Performance |
| Timeline |
| Getac Technology Corp |
| Thermaltake Technology |
Getac Technology and Thermaltake Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Getac Technology and Thermaltake Technology
The main advantage of trading using opposite Getac Technology and Thermaltake Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Getac Technology position performs unexpectedly, Thermaltake 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 Thermaltake Technology will offset losses from the drop in Thermaltake Technology's long position.The idea behind Getac Technology Corp and Thermaltake Technology Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Thermaltake Technology vs. ASRock Inc | Thermaltake Technology vs. Auras Technology Co | Thermaltake Technology vs. Micro Star International Co | Thermaltake Technology vs. Gigabyte 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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