Correlation Between Integrated Service and Avalue Technology
Can any of the company-specific risk be diversified away by investing in both Integrated Service and Avalue 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 Integrated Service and Avalue Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Integrated Service Technology and Avalue Technology, you can compare the effects of market volatilities on Integrated Service and Avalue 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 Integrated Service with a short position of Avalue Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integrated Service and Avalue Technology.
Diversification Opportunities for Integrated Service and Avalue Technology
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Integrated and Avalue is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Integrated Service Technology and Avalue Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Avalue Technology and Integrated Service 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 Integrated Service Technology are associated (or correlated) with Avalue Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Avalue Technology has no effect on the direction of Integrated Service i.e., Integrated Service and Avalue Technology go up and down completely randomly.
Pair Corralation between Integrated Service and Avalue Technology
Assuming the 90 days trading horizon Integrated Service is expected to generate 4.69 times less return on investment than Avalue Technology. But when comparing it to its historical volatility, Integrated Service Technology is 1.91 times less risky than Avalue Technology. It trades about 0.19 of its potential returns per unit of risk. Avalue Technology is currently generating about 0.48 of returns per unit of risk over similar time horizon. If you would invest 9,100 in Avalue Technology on November 28, 2024 and sell it today you would earn a total of 2,100 from holding Avalue Technology or generate 23.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Integrated Service Technology vs. Avalue Technology
Performance |
| Timeline |
| Integrated Service |
| Avalue Technology |
Integrated Service and Avalue Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Integrated Service and Avalue Technology
The main advantage of trading using opposite Integrated Service and Avalue Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integrated Service position performs unexpectedly, Avalue 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 Avalue Technology will offset losses from the drop in Avalue Technology's long position.| Integrated Service vs. Tehmag Foods | Integrated Service vs. Far EasTone Telecommunications | Integrated Service vs. Wei Chuan Foods | Integrated Service vs. Feng Ching Metal |
| Avalue Technology vs. Ligitek Electronics Co | Avalue Technology vs. Maxigen Biotech | Avalue Technology vs. Taiwan Chinsan Electronic | Avalue Technology vs. Everlight Electronics 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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