Correlation Between Adata Technology and Wholetech System
Can any of the company-specific risk be diversified away by investing in both Adata Technology and Wholetech System 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 Wholetech System 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 Wholetech System Hitech, you can compare the effects of market volatilities on Adata Technology and Wholetech System 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 Wholetech System. Check out your portfolio center. Please also check ongoing floating volatility patterns of Adata Technology and Wholetech System.
Diversification Opportunities for Adata Technology and Wholetech System
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Adata and Wholetech is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Adata Technology Co and Wholetech System Hitech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wholetech System Hitech 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 Wholetech System. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wholetech System Hitech has no effect on the direction of Adata Technology i.e., Adata Technology and Wholetech System go up and down completely randomly.
Pair Corralation between Adata Technology and Wholetech System
Assuming the 90 days trading horizon Adata Technology is expected to generate 2.01 times less return on investment than Wholetech System. But when comparing it to its historical volatility, Adata Technology Co is 1.04 times less risky than Wholetech System. It trades about 0.05 of its potential returns per unit of risk. Wholetech System Hitech is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 3,921 in Wholetech System Hitech on September 14, 2024 and sell it today you would earn a total of 6,529 from holding Wholetech System Hitech or generate 166.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Adata Technology Co vs. Wholetech System Hitech
Performance |
| Timeline |
| Adata Technology |
| Wholetech System Hitech |
Adata Technology and Wholetech System Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Adata Technology and Wholetech System
The main advantage of trading using opposite Adata Technology and Wholetech System positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Adata Technology position performs unexpectedly, Wholetech System 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 Wholetech System will offset losses from the drop in Wholetech System'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 |
| Wholetech System vs. Mitake Information | Wholetech System vs. Provision Information CoLtd | Wholetech System vs. Healthconn Corp | Wholetech System vs. Adata Technology Co |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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