Correlation Between ASRock and Auras Technology
Can any of the company-specific risk be diversified away by investing in both ASRock and Auras 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 ASRock and Auras Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ASRock Inc and Auras Technology Co, you can compare the effects of market volatilities on ASRock and Auras 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 ASRock with a short position of Auras Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASRock and Auras Technology.
Diversification Opportunities for ASRock and Auras Technology
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between ASRock and Auras is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding ASRock Inc and Auras Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Auras Technology and ASRock 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 ASRock Inc are associated (or correlated) with Auras Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Auras Technology has no effect on the direction of ASRock i.e., ASRock and Auras Technology go up and down completely randomly.
Pair Corralation between ASRock and Auras Technology
Assuming the 90 days trading horizon ASRock Inc is expected to generate 0.77 times more return on investment than Auras Technology. However, ASRock Inc is 1.29 times less risky than Auras Technology. It trades about 0.21 of its potential returns per unit of risk. Auras Technology Co is currently generating about 0.05 per unit of risk. If you would invest 20,900 in ASRock Inc on August 27, 2024 and sell it today you would earn a total of 3,050 from holding ASRock Inc or generate 14.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ASRock Inc vs. Auras Technology Co
Performance |
| Timeline |
| ASRock Inc |
| Auras Technology |
ASRock and Auras Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ASRock and Auras Technology
The main advantage of trading using opposite ASRock and Auras Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASRock position performs unexpectedly, Auras 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 Auras Technology will offset losses from the drop in Auras Technology's long position.| ASRock vs. Novatek Microelectronics Corp | ASRock vs. Quanta Computer | ASRock vs. United Microelectronics |
| Auras Technology vs. Space Shuttle Hi Tech | Auras Technology vs. Sunfar Computer Co | Auras Technology vs. Leatec Fine Ceramics | Auras Technology vs. Information Technology Total |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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