Correlation Between Advanced Analog and Excelliance MOS
Can any of the company-specific risk be diversified away by investing in both Advanced Analog and Excelliance MOS 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 Advanced Analog and Excelliance MOS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Advanced Analog Technology and Excelliance MOS, you can compare the effects of market volatilities on Advanced Analog and Excelliance MOS 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 Advanced Analog with a short position of Excelliance MOS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advanced Analog and Excelliance MOS.
Diversification Opportunities for Advanced Analog and Excelliance MOS
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Advanced and Excelliance is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Advanced Analog Technology and Excelliance MOS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Excelliance MOS and Advanced Analog 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 Advanced Analog Technology are associated (or correlated) with Excelliance MOS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Excelliance MOS has no effect on the direction of Advanced Analog i.e., Advanced Analog and Excelliance MOS go up and down completely randomly.
Pair Corralation between Advanced Analog and Excelliance MOS
Assuming the 90 days trading horizon Advanced Analog Technology is expected to generate 1.56 times more return on investment than Excelliance MOS. However, Advanced Analog is 1.56 times more volatile than Excelliance MOS. It trades about 0.01 of its potential returns per unit of risk. Excelliance MOS is currently generating about -0.05 per unit of risk. If you would invest 7,156 in Advanced Analog Technology on September 2, 2024 and sell it today you would lose (316.00) from holding Advanced Analog Technology or give up 4.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Advanced Analog Technology vs. Excelliance MOS
Performance |
| Timeline |
| Advanced Analog Tech |
| Excelliance MOS |
Advanced Analog and Excelliance MOS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advanced Analog and Excelliance MOS
The main advantage of trading using opposite Advanced Analog and Excelliance MOS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advanced Analog position performs unexpectedly, Excelliance MOS 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 Excelliance MOS will offset losses from the drop in Excelliance MOS's long position.| Advanced Analog vs. Grand Pacific Petrochemical | Advanced Analog vs. Chernan Metal Industrial | Advanced Analog vs. Chung Hwa Chemical | Advanced Analog vs. Sunspring Metal Corp |
| Excelliance MOS vs. Sinopower Semiconductor | Excelliance MOS vs. Niko Semiconductor Co | Excelliance MOS vs. Advanced Power Electronics | Excelliance MOS vs. Anpec Electronics |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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