Correlation Between Univacco Technology and Asmedia Technology
Can any of the company-specific risk be diversified away by investing in both Univacco Technology 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 Univacco Technology and Asmedia Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Univacco Technology and Asmedia Technology, you can compare the effects of market volatilities on Univacco Technology 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 Univacco Technology with a short position of Asmedia Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Univacco Technology and Asmedia Technology.
Diversification Opportunities for Univacco Technology and Asmedia Technology
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Univacco and Asmedia is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Univacco Technology and Asmedia Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asmedia Technology and Univacco 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 Univacco Technology 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 Univacco Technology i.e., Univacco Technology and Asmedia Technology go up and down completely randomly.
Pair Corralation between Univacco Technology and Asmedia Technology
Assuming the 90 days trading horizon Univacco Technology is expected to generate 1.15 times less return on investment than Asmedia Technology. But when comparing it to its historical volatility, Univacco Technology is 1.53 times less risky than Asmedia Technology. It trades about 0.09 of its potential returns per unit of risk. Asmedia Technology is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 69,653 in Asmedia Technology on September 2, 2024 and sell it today you would earn a total of 91,847 from holding Asmedia Technology or generate 131.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Univacco Technology vs. Asmedia Technology
Performance |
| Timeline |
| Univacco Technology |
| Asmedia Technology |
Univacco Technology and Asmedia Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Univacco Technology and Asmedia Technology
The main advantage of trading using opposite Univacco Technology and Asmedia Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Univacco Technology 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.| Univacco Technology vs. PChome Online | Univacco Technology vs. Shanghai Commercial Savings | Univacco Technology vs. Sinopac Financial Holdings | Univacco Technology vs. Yi Jinn Industrial |
| 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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