Correlation Between Edimax Technology and CyberTAN Technology
Can any of the company-specific risk be diversified away by investing in both Edimax Technology and CyberTAN 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 Edimax Technology and CyberTAN Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Edimax Technology Co and CyberTAN Technology, you can compare the effects of market volatilities on Edimax Technology and CyberTAN 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 Edimax Technology with a short position of CyberTAN Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Edimax Technology and CyberTAN Technology.
Diversification Opportunities for Edimax Technology and CyberTAN Technology
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Edimax and CyberTAN is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Edimax Technology Co and CyberTAN Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CyberTAN Technology and Edimax 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 Edimax Technology Co are associated (or correlated) with CyberTAN Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CyberTAN Technology has no effect on the direction of Edimax Technology i.e., Edimax Technology and CyberTAN Technology go up and down completely randomly.
Pair Corralation between Edimax Technology and CyberTAN Technology
Assuming the 90 days trading horizon Edimax Technology Co is expected to under-perform the CyberTAN Technology. But the stock apears to be less risky and, when comparing its historical volatility, Edimax Technology Co is 1.52 times less risky than CyberTAN Technology. The stock trades about -0.05 of its potential returns per unit of risk. The CyberTAN Technology is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 3,380 in CyberTAN Technology on August 30, 2024 and sell it today you would lose (115.00) from holding CyberTAN Technology or give up 3.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Edimax Technology Co vs. CyberTAN Technology
Performance |
| Timeline |
| Edimax Technology |
| CyberTAN Technology |
Edimax Technology and CyberTAN Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Edimax Technology and CyberTAN Technology
The main advantage of trading using opposite Edimax Technology and CyberTAN Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Edimax Technology position performs unexpectedly, CyberTAN 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 CyberTAN Technology will offset losses from the drop in CyberTAN Technology's long position.| Edimax Technology vs. CyberTAN Technology | Edimax Technology vs. HannsTouch Solution | Edimax Technology vs. Alpha Networks | Edimax Technology vs. Billion Electric Co |
| CyberTAN Technology vs. Gemtek Technology Co | CyberTAN Technology vs. Alpha Networks | CyberTAN Technology vs. Pan International Industrial Corp | CyberTAN Technology vs. Innolux 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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