Correlation Between Emerging Display and Advanced Analog
Can any of the company-specific risk be diversified away by investing in both Emerging Display and Advanced Analog 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 Emerging Display and Advanced Analog into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Emerging Display Technologies and Advanced Analog Technology, you can compare the effects of market volatilities on Emerging Display and Advanced Analog 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 Emerging Display with a short position of Advanced Analog. Check out your portfolio center. Please also check ongoing floating volatility patterns of Emerging Display and Advanced Analog.
Diversification Opportunities for Emerging Display and Advanced Analog
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Emerging and Advanced is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Emerging Display Technologies and Advanced Analog Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advanced Analog Tech and Emerging Display 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 Emerging Display Technologies are associated (or correlated) with Advanced Analog. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advanced Analog Tech has no effect on the direction of Emerging Display i.e., Emerging Display and Advanced Analog go up and down completely randomly.
Pair Corralation between Emerging Display and Advanced Analog
Assuming the 90 days trading horizon Emerging Display Technologies is expected to generate 0.58 times more return on investment than Advanced Analog. However, Emerging Display Technologies is 1.74 times less risky than Advanced Analog. It trades about 0.0 of its potential returns per unit of risk. Advanced Analog Technology is currently generating about -0.13 per unit of risk. If you would invest 2,665 in Emerging Display Technologies on September 13, 2024 and sell it today you would earn a total of 0.00 from holding Emerging Display Technologies or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Emerging Display Technologies vs. Advanced Analog Technology
Performance |
| Timeline |
| Emerging Display Tec |
| Advanced Analog Tech |
Emerging Display and Advanced Analog Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Emerging Display and Advanced Analog
The main advantage of trading using opposite Emerging Display and Advanced Analog positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Emerging Display position performs unexpectedly, Advanced Analog 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 Advanced Analog will offset losses from the drop in Advanced Analog's long position.| Emerging Display vs. AU Optronics | Emerging Display vs. Innolux Corp | Emerging Display vs. Ruentex Development Co | Emerging Display vs. WiseChip Semiconductor |
| Advanced Analog vs. Chun Yuan Steel | Advanced Analog vs. China Steel Corp | Advanced Analog vs. Mayer Steel Pipe | Advanced Analog vs. C Media Electronics |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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