Correlation Between AVer Information and Chung Fu
Can any of the company-specific risk be diversified away by investing in both AVer Information and Chung Fu 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 AVer Information and Chung Fu into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AVer Information and Chung Fu Tex International, you can compare the effects of market volatilities on AVer Information and Chung Fu 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 AVer Information with a short position of Chung Fu. Check out your portfolio center. Please also check ongoing floating volatility patterns of AVer Information and Chung Fu.
Diversification Opportunities for AVer Information and Chung Fu
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between AVer and Chung is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding AVer Information and Chung Fu Tex International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chung Fu Tex and AVer Information 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 AVer Information are associated (or correlated) with Chung Fu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chung Fu Tex has no effect on the direction of AVer Information i.e., AVer Information and Chung Fu go up and down completely randomly.
Pair Corralation between AVer Information and Chung Fu
Assuming the 90 days trading horizon AVer Information is expected to generate 0.73 times more return on investment than Chung Fu. However, AVer Information is 1.37 times less risky than Chung Fu. It trades about 0.0 of its potential returns per unit of risk. Chung Fu Tex International is currently generating about 0.0 per unit of risk. If you would invest 4,480 in AVer Information on November 1, 2024 and sell it today you would lose (440.00) from holding AVer Information or give up 9.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AVer Information vs. Chung Fu Tex International
Performance |
| Timeline |
| AVer Information |
| Chung Fu Tex |
AVer Information and Chung Fu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AVer Information and Chung Fu
The main advantage of trading using opposite AVer Information and Chung Fu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AVer Information position performs unexpectedly, Chung Fu 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 Chung Fu will offset losses from the drop in Chung Fu's long position.| AVer Information vs. Li Kang Biomedical | AVer Information vs. Weltrend Semiconductor | AVer Information vs. WiseChip Semiconductor | AVer Information vs. Realtek Semiconductor Corp |
| Chung Fu vs. TWOWAY Communications | Chung Fu vs. Tainet Communication System | Chung Fu vs. AVerMedia Technologies | Chung Fu vs. Formosa Chemicals Fibre |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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