Correlation Between EMemory Technology and King Yuan
Can any of the company-specific risk be diversified away by investing in both EMemory Technology and King Yuan 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 EMemory Technology and King Yuan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between eMemory Technology and King Yuan Electronics, you can compare the effects of market volatilities on EMemory Technology and King Yuan 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 EMemory Technology with a short position of King Yuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of EMemory Technology and King Yuan.
Diversification Opportunities for EMemory Technology and King Yuan
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between EMemory and King is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding eMemory Technology and King Yuan Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on King Yuan Electronics and EMemory 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 eMemory Technology are associated (or correlated) with King Yuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of King Yuan Electronics has no effect on the direction of EMemory Technology i.e., EMemory Technology and King Yuan go up and down completely randomly.
Pair Corralation between EMemory Technology and King Yuan
If you would invest (100.00) in King Yuan Electronics on August 26, 2024 and sell it today you would earn a total of 100.00 from holding King Yuan Electronics or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 0.0% |
| Values | Daily Returns |
eMemory Technology vs. King Yuan Electronics
Performance |
| Timeline |
| eMemory Technology |
| King Yuan Electronics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Insignificant
EMemory Technology and King Yuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EMemory Technology and King Yuan
The main advantage of trading using opposite EMemory Technology and King Yuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EMemory Technology position performs unexpectedly, King Yuan 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 King Yuan will offset losses from the drop in King Yuan's long position.| EMemory Technology vs. Nan Ya Printed | EMemory Technology vs. Global Unichip Corp | EMemory Technology vs. Aspeed Technology | EMemory Technology vs. Alchip Technologies |
| King Yuan vs. Powertech Technology | King Yuan vs. Novatek Microelectronics Corp | King Yuan vs. Greatek Electronics | King Yuan vs. Realtek Semiconductor 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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