Correlation Between Getac Technology and Alcor Micro
Can any of the company-specific risk be diversified away by investing in both Getac Technology and Alcor Micro 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 Alcor Micro 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 Alcor Micro, you can compare the effects of market volatilities on Getac Technology and Alcor Micro 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 Alcor Micro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Getac Technology and Alcor Micro.
Diversification Opportunities for Getac Technology and Alcor Micro
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Getac and Alcor is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Getac Technology Corp and Alcor Micro in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alcor Micro 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 Alcor Micro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alcor Micro has no effect on the direction of Getac Technology i.e., Getac Technology and Alcor Micro go up and down completely randomly.
Pair Corralation between Getac Technology and Alcor Micro
Assuming the 90 days trading horizon Getac Technology Corp is expected to generate 0.96 times more return on investment than Alcor Micro. However, Getac Technology Corp is 1.04 times less risky than Alcor Micro. It trades about -0.13 of its potential returns per unit of risk. Alcor Micro is currently generating about -0.25 per unit of risk. If you would invest 11,300 in Getac Technology Corp on August 27, 2024 and sell it today you would lose (700.00) from holding Getac Technology Corp or give up 6.19% 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. Alcor Micro
Performance |
| Timeline |
| Getac Technology Corp |
| Alcor Micro |
Getac Technology and Alcor Micro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Getac Technology and Alcor Micro
The main advantage of trading using opposite Getac Technology and Alcor Micro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Getac Technology position performs unexpectedly, Alcor Micro 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 Alcor Micro will offset losses from the drop in Alcor Micro's long position.| Getac Technology vs. Novatek Microelectronics Corp | Getac Technology vs. Quanta Computer | Getac Technology vs. United Microelectronics |
| Alcor Micro vs. Quanta Computer | Alcor Micro vs. Wiwynn Corp | Alcor Micro vs. Getac Technology Corp | Alcor Micro vs. IEI Integration 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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