Correlation Between Adata Technology and Yageo Corp
Can any of the company-specific risk be diversified away by investing in both Adata Technology and Yageo 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 Adata Technology and Yageo Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Adata Technology Co and Yageo Corp, you can compare the effects of market volatilities on Adata Technology and Yageo 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 Adata Technology with a short position of Yageo Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Adata Technology and Yageo Corp.
Diversification Opportunities for Adata Technology and Yageo Corp
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Adata and Yageo is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Adata Technology Co and Yageo Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yageo Corp and Adata 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 Adata Technology Co are associated (or correlated) with Yageo Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yageo Corp has no effect on the direction of Adata Technology i.e., Adata Technology and Yageo Corp go up and down completely randomly.
Pair Corralation between Adata Technology and Yageo Corp
Assuming the 90 days trading horizon Adata Technology Co is expected to under-perform the Yageo Corp. In addition to that, Adata Technology is 1.08 times more volatile than Yageo Corp. It trades about -0.02 of its total potential returns per unit of risk. Yageo Corp is currently generating about -0.02 per unit of volatility. If you would invest 61,600 in Yageo Corp on September 14, 2024 and sell it today you would lose (9,000) from holding Yageo Corp or give up 14.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Adata Technology Co vs. Yageo Corp
Performance |
| Timeline |
| Adata Technology |
| Yageo Corp |
Adata Technology and Yageo Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Adata Technology and Yageo Corp
The main advantage of trading using opposite Adata Technology and Yageo Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Adata Technology position performs unexpectedly, Yageo 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 Yageo Corp will offset losses from the drop in Yageo Corp's long position.| Adata Technology vs. WIN Semiconductors | Adata Technology vs. GlobalWafers Co | Adata Technology vs. Novatek Microelectronics Corp | Adata Technology vs. Ruentex Development Co |
| Yageo Corp vs. ESUN Financial Holding | Yageo Corp vs. Wei Chuan Foods | Yageo Corp vs. Cathay Financial Holding | Yageo Corp vs. Tai Tung Communication |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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