Correlation Between BenQ Medical and Antec
Can any of the company-specific risk be diversified away by investing in both BenQ Medical and Antec 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 BenQ Medical and Antec into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BenQ Medical Technology and Antec Inc, you can compare the effects of market volatilities on BenQ Medical and Antec 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 BenQ Medical with a short position of Antec. Check out your portfolio center. Please also check ongoing floating volatility patterns of BenQ Medical and Antec.
Diversification Opportunities for BenQ Medical and Antec
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between BenQ and Antec is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding BenQ Medical Technology and Antec Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Antec Inc and BenQ Medical 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 BenQ Medical Technology are associated (or correlated) with Antec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Antec Inc has no effect on the direction of BenQ Medical i.e., BenQ Medical and Antec go up and down completely randomly.
Pair Corralation between BenQ Medical and Antec
Assuming the 90 days trading horizon BenQ Medical Technology is expected to generate 0.28 times more return on investment than Antec. However, BenQ Medical Technology is 3.54 times less risky than Antec. It trades about -0.05 of its potential returns per unit of risk. Antec Inc is currently generating about -0.02 per unit of risk. If you would invest 5,990 in BenQ Medical Technology on September 14, 2024 and sell it today you would lose (1,100) from holding BenQ Medical Technology or give up 18.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.62% |
| Values | Daily Returns |
BenQ Medical Technology vs. Antec Inc
Performance |
| Timeline |
| BenQ Medical Technology |
| Antec Inc |
BenQ Medical and Antec Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BenQ Medical and Antec
The main advantage of trading using opposite BenQ Medical and Antec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BenQ Medical position performs unexpectedly, Antec 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 Antec will offset losses from the drop in Antec's long position.| BenQ Medical vs. Universal Vision Biotechnology | BenQ Medical vs. Excelsior Medical Co | BenQ Medical vs. Pacific Hospital Supply | BenQ Medical vs. Ruentex Development Co |
| Antec vs. Tai Tung Communication | Antec vs. Wonderful Hi Tech Co | Antec vs. BenQ Medical Technology | Antec vs. Asustek Computer |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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