Correlation Between Arbor Technology and Feature Integration
Can any of the company-specific risk be diversified away by investing in both Arbor Technology and Feature Integration 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 Arbor Technology and Feature Integration into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Arbor Technology and Feature Integration Technology, you can compare the effects of market volatilities on Arbor Technology and Feature Integration 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 Arbor Technology with a short position of Feature Integration. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arbor Technology and Feature Integration.
Diversification Opportunities for Arbor Technology and Feature Integration
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Arbor and Feature is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Arbor Technology and Feature Integration Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Feature Integration and Arbor 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 Arbor Technology are associated (or correlated) with Feature Integration. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Feature Integration has no effect on the direction of Arbor Technology i.e., Arbor Technology and Feature Integration go up and down completely randomly.
Pair Corralation between Arbor Technology and Feature Integration
Assuming the 90 days trading horizon Arbor Technology is expected to generate 1.31 times more return on investment than Feature Integration. However, Arbor Technology is 1.31 times more volatile than Feature Integration Technology. It trades about 0.55 of its potential returns per unit of risk. Feature Integration Technology is currently generating about 0.36 per unit of risk. If you would invest 4,715 in Arbor Technology on November 28, 2024 and sell it today you would earn a total of 1,535 from holding Arbor Technology or generate 32.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 94.44% |
| Values | Daily Returns |
Arbor Technology vs. Feature Integration Technology
Performance |
| Timeline |
| Arbor Technology |
| Feature Integration |
Arbor Technology and Feature Integration Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Arbor Technology and Feature Integration
The main advantage of trading using opposite Arbor Technology and Feature Integration positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arbor Technology position performs unexpectedly, Feature Integration 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 Feature Integration will offset losses from the drop in Feature Integration's long position.| Arbor Technology vs. SciVision Biotech | Arbor Technology vs. Etrend Hightech | Arbor Technology vs. Castles Technology Co | Arbor Technology vs. Asmedia Technology |
| Feature Integration vs. Apacer Technology | Feature Integration vs. Nova Technology | Feature Integration vs. X Legend Entertainment Co | Feature Integration vs. Zhen Ding Technology |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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