Correlation Between Axiomtek and Wiwynn Corp
Can any of the company-specific risk be diversified away by investing in both Axiomtek and Wiwynn Corp 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 Axiomtek and Wiwynn Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Axiomtek Co and Wiwynn Corp, you can compare the effects of market volatilities on Axiomtek and Wiwynn Corp 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 Axiomtek with a short position of Wiwynn Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axiomtek and Wiwynn Corp.
Diversification Opportunities for Axiomtek and Wiwynn Corp
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Axiomtek and Wiwynn is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Axiomtek Co and Wiwynn Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wiwynn Corp and Axiomtek 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 Axiomtek Co are associated (or correlated) with Wiwynn Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wiwynn Corp has no effect on the direction of Axiomtek i.e., Axiomtek and Wiwynn Corp go up and down completely randomly.
Pair Corralation between Axiomtek and Wiwynn Corp
Assuming the 90 days trading horizon Axiomtek Co is expected to generate 0.5 times more return on investment than Wiwynn Corp. However, Axiomtek Co is 2.0 times less risky than Wiwynn Corp. It trades about 0.13 of its potential returns per unit of risk. Wiwynn Corp is currently generating about 0.04 per unit of risk. If you would invest 9,210 in Axiomtek Co on September 2, 2024 and sell it today you would earn a total of 1,340 from holding Axiomtek Co or generate 14.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Axiomtek Co vs. Wiwynn Corp
Performance |
| Timeline |
| Axiomtek |
| Wiwynn Corp |
Axiomtek and Wiwynn Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Axiomtek and Wiwynn Corp
The main advantage of trading using opposite Axiomtek and Wiwynn Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axiomtek position performs unexpectedly, Wiwynn Corp 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 Wiwynn Corp will offset losses from the drop in Wiwynn Corp's long position.| Axiomtek vs. Silicon Power Computer | Axiomtek vs. Double Bond Chemical | Axiomtek vs. Chi Sheng Chemical | Axiomtek vs. Taita Chemical Co |
| Wiwynn Corp vs. Aspeed Technology | Wiwynn Corp vs. Unimicron Technology Corp | Wiwynn Corp vs. Asmedia Technology | Wiwynn Corp vs. Novatek Microelectronics 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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