Correlation Between EMemory Technology and Asia Tech
Can any of the company-specific risk be diversified away by investing in both EMemory Technology and Asia Tech 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 Asia Tech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between eMemory Technology and Asia Tech Image, you can compare the effects of market volatilities on EMemory Technology and Asia Tech 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 Asia Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of EMemory Technology and Asia Tech.
Diversification Opportunities for EMemory Technology and Asia Tech
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between EMemory and Asia is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding eMemory Technology and Asia Tech Image in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asia Tech Image 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 Asia Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asia Tech Image has no effect on the direction of EMemory Technology i.e., EMemory Technology and Asia Tech go up and down completely randomly.
Pair Corralation between EMemory Technology and Asia Tech
Assuming the 90 days trading horizon EMemory Technology is expected to generate 1.44 times less return on investment than Asia Tech. In addition to that, EMemory Technology is 1.3 times more volatile than Asia Tech Image. It trades about 0.05 of its total potential returns per unit of risk. Asia Tech Image is currently generating about 0.1 per unit of volatility. If you would invest 6,940 in Asia Tech Image on September 13, 2024 and sell it today you would earn a total of 2,220 from holding Asia Tech Image or generate 31.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
eMemory Technology vs. Asia Tech Image
Performance |
| Timeline |
| eMemory Technology |
| Asia Tech Image |
EMemory Technology and Asia Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EMemory Technology and Asia Tech
The main advantage of trading using opposite EMemory Technology and Asia Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EMemory Technology position performs unexpectedly, Asia Tech 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 Asia Tech will offset losses from the drop in Asia Tech'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 |
| Asia Tech vs. Hsin Kuang Steel | Asia Tech vs. Chun Yuan Steel | Asia Tech vs. WIN Semiconductors | Asia Tech vs. Feng Hsin Steel |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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