Correlation Between Wha Yu and Aker Technology
Can any of the company-specific risk be diversified away by investing in both Wha Yu and Aker 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 Wha Yu and Aker Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wha Yu Industrial and Aker Technology Co, you can compare the effects of market volatilities on Wha Yu and Aker 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 Wha Yu with a short position of Aker Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wha Yu and Aker Technology.
Diversification Opportunities for Wha Yu and Aker Technology
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Wha and Aker is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Wha Yu Industrial and Aker Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aker Technology and Wha Yu 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 Wha Yu Industrial are associated (or correlated) with Aker Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aker Technology has no effect on the direction of Wha Yu i.e., Wha Yu and Aker Technology go up and down completely randomly.
Pair Corralation between Wha Yu and Aker Technology
Assuming the 90 days trading horizon Wha Yu Industrial is expected to generate 0.57 times more return on investment than Aker Technology. However, Wha Yu Industrial is 1.75 times less risky than Aker Technology. It trades about -0.13 of its potential returns per unit of risk. Aker Technology Co is currently generating about -0.13 per unit of risk. If you would invest 1,930 in Wha Yu Industrial on October 30, 2024 and sell it today you would lose (215.00) from holding Wha Yu Industrial or give up 11.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wha Yu Industrial vs. Aker Technology Co
Performance |
| Timeline |
| Wha Yu Industrial |
| Aker Technology |
Wha Yu and Aker Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wha Yu and Aker Technology
The main advantage of trading using opposite Wha Yu and Aker Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wha Yu position performs unexpectedly, Aker 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 Aker Technology will offset losses from the drop in Aker Technology's long position.| Wha Yu vs. Gemtek Technology Co | Wha Yu vs. Arcadyan Technology Corp | Wha Yu vs. Zinwell | Wha Yu vs. Silitech Technology Corp |
| Aker Technology vs. Advantech Co | Aker Technology vs. IEI Integration Corp | Aker Technology vs. Flytech Technology Co | Aker Technology vs. Ennoconn 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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