Correlation Between Globaltek Fabrication and Airtac International
Can any of the company-specific risk be diversified away by investing in both Globaltek Fabrication and Airtac International 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 Globaltek Fabrication and Airtac International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Globaltek Fabrication Co and Airtac International Group, you can compare the effects of market volatilities on Globaltek Fabrication and Airtac International 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 Globaltek Fabrication with a short position of Airtac International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Globaltek Fabrication and Airtac International.
Diversification Opportunities for Globaltek Fabrication and Airtac International
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Globaltek and Airtac is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Globaltek Fabrication Co and Airtac International Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Airtac International and Globaltek Fabrication 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 Globaltek Fabrication Co are associated (or correlated) with Airtac International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Airtac International has no effect on the direction of Globaltek Fabrication i.e., Globaltek Fabrication and Airtac International go up and down completely randomly.
Pair Corralation between Globaltek Fabrication and Airtac International
Assuming the 90 days trading horizon Globaltek Fabrication Co is expected to generate 1.53 times more return on investment than Airtac International. However, Globaltek Fabrication is 1.53 times more volatile than Airtac International Group. It trades about 0.09 of its potential returns per unit of risk. Airtac International Group is currently generating about -0.07 per unit of risk. If you would invest 4,995 in Globaltek Fabrication Co on September 3, 2024 and sell it today you would earn a total of 2,745 from holding Globaltek Fabrication Co or generate 54.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Globaltek Fabrication Co vs. Airtac International Group
Performance |
| Timeline |
| Globaltek Fabrication |
| Airtac International |
Globaltek Fabrication and Airtac International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Globaltek Fabrication and Airtac International
The main advantage of trading using opposite Globaltek Fabrication and Airtac International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Globaltek Fabrication position performs unexpectedly, Airtac International 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 Airtac International will offset losses from the drop in Airtac International's long position.| Globaltek Fabrication vs. SCI Pharmtech | Globaltek Fabrication vs. ZongTai Real Estate | Globaltek Fabrication vs. Ying Han Technology | Globaltek Fabrication vs. Tripod Technology Corp |
| Airtac International vs. Hiwin Technologies Corp | Airtac International vs. Advantech Co | Airtac International vs. Delta Electronics | Airtac International vs. Eclat Textile Co |
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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