Correlation Between Level Biotechnology and Asmedia Technology
Can any of the company-specific risk be diversified away by investing in both Level Biotechnology and Asmedia 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 Level Biotechnology and Asmedia Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Level Biotechnology and Asmedia Technology, you can compare the effects of market volatilities on Level Biotechnology and Asmedia 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 Level Biotechnology with a short position of Asmedia Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Level Biotechnology and Asmedia Technology.
Diversification Opportunities for Level Biotechnology and Asmedia Technology
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Level and Asmedia is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Level Biotechnology and Asmedia Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asmedia Technology and Level Biotechnology 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 Level Biotechnology are associated (or correlated) with Asmedia Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asmedia Technology has no effect on the direction of Level Biotechnology i.e., Level Biotechnology and Asmedia Technology go up and down completely randomly.
Pair Corralation between Level Biotechnology and Asmedia Technology
Assuming the 90 days trading horizon Level Biotechnology is expected to generate 0.25 times more return on investment than Asmedia Technology. However, Level Biotechnology is 4.02 times less risky than Asmedia Technology. It trades about 0.0 of its potential returns per unit of risk. Asmedia Technology is currently generating about -0.06 per unit of risk. If you would invest 3,210 in Level Biotechnology on August 31, 2024 and sell it today you would earn a total of 0.00 from holding Level Biotechnology or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Level Biotechnology vs. Asmedia Technology
Performance |
| Timeline |
| Level Biotechnology |
| Asmedia Technology |
Level Biotechnology and Asmedia Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Level Biotechnology and Asmedia Technology
The main advantage of trading using opposite Level Biotechnology and Asmedia Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Level Biotechnology position performs unexpectedly, Asmedia 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 Asmedia Technology will offset losses from the drop in Asmedia Technology's long position.| Level Biotechnology vs. Oneness Biotech Co | Level Biotechnology vs. Medigen Vaccine Biologics | Level Biotechnology vs. OBI Pharma | Level Biotechnology vs. TaiMed Biologics |
| Asmedia Technology vs. Alchip Technologies | Asmedia Technology vs. Aspeed Technology | Asmedia Technology vs. Silergy Corp | Asmedia Technology vs. Global Unichip 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |