Correlation Between AVer Information and Aker Technology
Can any of the company-specific risk be diversified away by investing in both AVer Information and Aker Technology 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 Aker Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AVer Information and Aker Technology Co, you can compare the effects of market volatilities on AVer Information and Aker Technology 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 Aker Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of AVer Information and Aker Technology.
Diversification Opportunities for AVer Information and Aker Technology
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AVer and Aker is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding AVer Information and Aker Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aker Technology 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 Aker Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aker Technology has no effect on the direction of AVer Information i.e., AVer Information and Aker Technology go up and down completely randomly.
Pair Corralation between AVer Information and Aker Technology
Assuming the 90 days trading horizon AVer Information is expected to generate 0.64 times more return on investment than Aker Technology. However, AVer Information is 1.57 times less risky than Aker Technology. It trades about -0.25 of its potential returns per unit of risk. Aker Technology Co is currently generating about -0.29 per unit of risk. If you would invest 4,350 in AVer Information on October 24, 2024 and sell it today you would lose (320.00) from holding AVer Information or give up 7.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AVer Information vs. Aker Technology Co
Performance |
| Timeline |
| AVer Information |
| Aker Technology |
AVer Information and Aker Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AVer Information and Aker Technology
The main advantage of trading using opposite AVer Information and Aker Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AVer Information position performs unexpectedly, Aker Technology 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 Aker Technology will offset losses from the drop in Aker Technology's long position.| AVer Information vs. Dynamic Medical Technologies | AVer Information vs. Medigen Biotechnology | AVer Information vs. PChome Online | AVer Information vs. Mitake Information |
| Aker Technology vs. AVer Information | Aker Technology vs. Syntek Semiconductor Co | Aker Technology vs. Gigastorage Corp | Aker Technology vs. WiseChip Semiconductor |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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