Correlation Between Raontech and Techwing
Can any of the company-specific risk be diversified away by investing in both Raontech and Techwing 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 Raontech and Techwing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Raontech and Techwing, you can compare the effects of market volatilities on Raontech and Techwing 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 Raontech with a short position of Techwing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Raontech and Techwing.
Diversification Opportunities for Raontech and Techwing
Very weak diversification
The 3 months correlation between Raontech and Techwing is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Raontech and Techwing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Techwing and Raontech 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 Raontech are associated (or correlated) with Techwing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Techwing has no effect on the direction of Raontech i.e., Raontech and Techwing go up and down completely randomly.
Pair Corralation between Raontech and Techwing
Assuming the 90 days trading horizon Raontech is expected to under-perform the Techwing. In addition to that, Raontech is 1.05 times more volatile than Techwing. It trades about 0.0 of its total potential returns per unit of risk. Techwing is currently generating about 0.12 per unit of volatility. If you would invest 625,580 in Techwing on November 2, 2024 and sell it today you would earn a total of 4,324,420 from holding Techwing or generate 691.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 96.45% |
| Values | Daily Returns |
Raontech vs. Techwing
Performance |
| Timeline |
| Raontech |
| Techwing |
Raontech and Techwing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Raontech and Techwing
The main advantage of trading using opposite Raontech and Techwing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Raontech position performs unexpectedly, Techwing 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 Techwing will offset losses from the drop in Techwing's long position.| Raontech vs. BIT Computer Co | Raontech vs. Display Tech Co | Raontech vs. Sangsin Energy Display | Raontech vs. Inzi Display CoLtd |
| Techwing vs. Samhyun Steel Co | Techwing vs. Global Standard Technology | Techwing vs. Bosung Power Technology | Techwing vs. Digital Imaging 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |