Correlation Between Gemtek Technology and Accton Technology
Can any of the company-specific risk be diversified away by investing in both Gemtek Technology and Accton 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 Gemtek Technology and Accton Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gemtek Technology Co and Accton Technology Corp, you can compare the effects of market volatilities on Gemtek Technology and Accton 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 Gemtek Technology with a short position of Accton Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gemtek Technology and Accton Technology.
Diversification Opportunities for Gemtek Technology and Accton Technology
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Gemtek and Accton is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Gemtek Technology Co and Accton Technology Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accton Technology Corp and Gemtek Technology 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 Gemtek Technology Co are associated (or correlated) with Accton Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Accton Technology Corp has no effect on the direction of Gemtek Technology i.e., Gemtek Technology and Accton Technology go up and down completely randomly.
Pair Corralation between Gemtek Technology and Accton Technology
Assuming the 90 days trading horizon Gemtek Technology Co is expected to under-perform the Accton Technology. But the stock apears to be less risky and, when comparing its historical volatility, Gemtek Technology Co is 1.84 times less risky than Accton Technology. The stock trades about -0.09 of its potential returns per unit of risk. The Accton Technology Corp is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 57,000 in Accton Technology Corp on August 25, 2024 and sell it today you would earn a total of 7,000 from holding Accton Technology Corp or generate 12.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gemtek Technology Co vs. Accton Technology Corp
Performance |
| Timeline |
| Gemtek Technology |
| Accton Technology Corp |
Gemtek Technology and Accton Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gemtek Technology and Accton Technology
The main advantage of trading using opposite Gemtek Technology and Accton Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gemtek Technology position performs unexpectedly, Accton 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 Accton Technology will offset losses from the drop in Accton Technology's long position.| Gemtek Technology vs. Novatek Microelectronics Corp | Gemtek Technology vs. Quanta Computer | Gemtek Technology vs. United Microelectronics |
| Accton Technology vs. Novatek Microelectronics Corp | Accton Technology vs. Quanta Computer | Accton Technology vs. United Microelectronics |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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