Correlation Between Getac Technology and Flytech Technology
Can any of the company-specific risk be diversified away by investing in both Getac Technology and Flytech 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 Flytech 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 Flytech Technology Co, you can compare the effects of market volatilities on Getac Technology and Flytech 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 Flytech Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Getac Technology and Flytech Technology.
Diversification Opportunities for Getac Technology and Flytech Technology
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Getac and Flytech is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Getac Technology Corp and Flytech Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flytech 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 Flytech Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flytech Technology has no effect on the direction of Getac Technology i.e., Getac Technology and Flytech Technology go up and down completely randomly.
Pair Corralation between Getac Technology and Flytech Technology
Assuming the 90 days trading horizon Getac Technology Corp is expected to under-perform the Flytech Technology. In addition to that, Getac Technology is 1.16 times more volatile than Flytech Technology Co. It trades about -0.07 of its total potential returns per unit of risk. Flytech Technology Co is currently generating about -0.05 per unit of volatility. If you would invest 8,600 in Flytech Technology Co on August 30, 2024 and sell it today you would lose (420.00) from holding Flytech Technology Co or give up 4.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Getac Technology Corp vs. Flytech Technology Co
Performance |
| Timeline |
| Getac Technology Corp |
| Flytech Technology |
Getac Technology and Flytech Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Getac Technology and Flytech Technology
The main advantage of trading using opposite Getac Technology and Flytech Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Getac Technology position performs unexpectedly, Flytech 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 Flytech Technology will offset losses from the drop in Flytech Technology'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 |
| Flytech Technology vs. Advantech Co | Flytech Technology vs. Posiflex Technology | Flytech Technology vs. IEI Integration Corp | Flytech Technology vs. Topco Scientific 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 Channel module to use Commodity Channel Index to analyze current equity momentum.
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