Correlation Between Wholetech System and AU Optronics
Can any of the company-specific risk be diversified away by investing in both Wholetech System and AU Optronics 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 Wholetech System and AU Optronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wholetech System Hitech and AU Optronics, you can compare the effects of market volatilities on Wholetech System and AU Optronics 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 Wholetech System with a short position of AU Optronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wholetech System and AU Optronics.
Diversification Opportunities for Wholetech System and AU Optronics
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Wholetech and 2409 is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Wholetech System Hitech and AU Optronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AU Optronics and Wholetech System 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 Wholetech System Hitech are associated (or correlated) with AU Optronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AU Optronics has no effect on the direction of Wholetech System i.e., Wholetech System and AU Optronics go up and down completely randomly.
Pair Corralation between Wholetech System and AU Optronics
Assuming the 90 days trading horizon Wholetech System Hitech is expected to generate 1.41 times more return on investment than AU Optronics. However, Wholetech System is 1.41 times more volatile than AU Optronics. It trades about 0.05 of its potential returns per unit of risk. AU Optronics is currently generating about -0.03 per unit of risk. If you would invest 10,200 in Wholetech System Hitech on September 13, 2024 and sell it today you would earn a total of 150.00 from holding Wholetech System Hitech or generate 1.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wholetech System Hitech vs. AU Optronics
Performance |
| Timeline |
| Wholetech System Hitech |
| AU Optronics |
Wholetech System and AU Optronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wholetech System and AU Optronics
The main advantage of trading using opposite Wholetech System and AU Optronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wholetech System position performs unexpectedly, AU Optronics 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 AU Optronics will offset losses from the drop in AU Optronics' long position.| Wholetech System vs. AU Optronics | Wholetech System vs. Innolux Corp | Wholetech System vs. Ruentex Development Co | Wholetech System vs. WiseChip Semiconductor |
| AU Optronics vs. Innolux Corp | AU Optronics vs. United Microelectronics | AU Optronics vs. China Steel Corp | AU Optronics vs. Quanta Computer |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |