Correlation Between EMemory Technology and Ardentec
Can any of the company-specific risk be diversified away by investing in both EMemory Technology and Ardentec 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 Ardentec into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between eMemory Technology and Ardentec, you can compare the effects of market volatilities on EMemory Technology and Ardentec 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 Ardentec. Check out your portfolio center. Please also check ongoing floating volatility patterns of EMemory Technology and Ardentec.
Diversification Opportunities for EMemory Technology and Ardentec
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between EMemory and Ardentec is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding eMemory Technology and Ardentec in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ardentec 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 Ardentec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ardentec has no effect on the direction of EMemory Technology i.e., EMemory Technology and Ardentec go up and down completely randomly.
Pair Corralation between EMemory Technology and Ardentec
Assuming the 90 days trading horizon eMemory Technology is expected to generate 1.63 times more return on investment than Ardentec. However, EMemory Technology is 1.63 times more volatile than Ardentec. It trades about 0.06 of its potential returns per unit of risk. Ardentec is currently generating about 0.03 per unit of risk. If you would invest 180,756 in eMemory Technology on December 2, 2024 and sell it today you would earn a total of 113,744 from holding eMemory Technology or generate 62.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
eMemory Technology vs. Ardentec
Performance |
| Timeline |
| eMemory Technology |
| Ardentec |
EMemory Technology and Ardentec Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EMemory Technology and Ardentec
The main advantage of trading using opposite EMemory Technology and Ardentec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EMemory Technology position performs unexpectedly, Ardentec 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 Ardentec will offset losses from the drop in Ardentec'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 |
| Ardentec vs. Delpha Construction Co | Ardentec vs. Evermore Chemical Industry | Ardentec vs. Pan Asia Chemical | Ardentec vs. Te Chang Construction |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |