Correlation Between LARGAN Precision and Asia Optical
Can any of the company-specific risk be diversified away by investing in both LARGAN Precision and Asia Optical 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 LARGAN Precision and Asia Optical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LARGAN Precision Co and Asia Optical Co, you can compare the effects of market volatilities on LARGAN Precision and Asia Optical 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 LARGAN Precision with a short position of Asia Optical. Check out your portfolio center. Please also check ongoing floating volatility patterns of LARGAN Precision and Asia Optical.
Diversification Opportunities for LARGAN Precision and Asia Optical
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between LARGAN and Asia is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding LARGAN Precision Co and Asia Optical Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asia Optical and LARGAN Precision 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 LARGAN Precision Co are associated (or correlated) with Asia Optical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asia Optical has no effect on the direction of LARGAN Precision i.e., LARGAN Precision and Asia Optical go up and down completely randomly.
Pair Corralation between LARGAN Precision and Asia Optical
If you would invest 230,000 in LARGAN Precision Co on August 30, 2024 and sell it today you would earn a total of 14,500 from holding LARGAN Precision Co or generate 6.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.55% |
| Values | Daily Returns |
LARGAN Precision Co vs. Asia Optical Co
Performance |
| Timeline |
| LARGAN Precision |
| Asia Optical |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
LARGAN Precision and Asia Optical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LARGAN Precision and Asia Optical
The main advantage of trading using opposite LARGAN Precision and Asia Optical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LARGAN Precision position performs unexpectedly, Asia Optical 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 Asia Optical will offset losses from the drop in Asia Optical's long position.| LARGAN Precision vs. MediaTek | LARGAN Precision vs. Hon Hai Precision | LARGAN Precision vs. Delta Electronics | LARGAN Precision vs. Catcher Technology Co |
| Asia Optical vs. LARGAN Precision Co | Asia Optical vs. Novatek Microelectronics Corp | Asia Optical vs. Genius Electronic Optical | Asia Optical vs. Catcher 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |