Correlation Between Gemtek Technology and Waffer Technology
Can any of the company-specific risk be diversified away by investing in both Gemtek Technology and Waffer 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 Waffer 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 Waffer Technology Corp, you can compare the effects of market volatilities on Gemtek Technology and Waffer 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 Waffer Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gemtek Technology and Waffer Technology.
Diversification Opportunities for Gemtek Technology and Waffer Technology
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Gemtek and Waffer is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Gemtek Technology Co and Waffer Technology Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Waffer 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 Waffer Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Waffer Technology Corp has no effect on the direction of Gemtek Technology i.e., Gemtek Technology and Waffer Technology go up and down completely randomly.
Pair Corralation between Gemtek Technology and Waffer Technology
Assuming the 90 days trading horizon Gemtek Technology is expected to generate 28.52 times less return on investment than Waffer Technology. But when comparing it to its historical volatility, Gemtek Technology Co is 22.28 times less risky than Waffer Technology. It trades about 0.04 of its potential returns per unit of risk. Waffer Technology Corp is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 3,735 in Waffer Technology Corp on September 3, 2024 and sell it today you would earn a total of 3,365 from holding Waffer Technology Corp or generate 90.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gemtek Technology Co vs. Waffer Technology Corp
Performance |
| Timeline |
| Gemtek Technology |
| Waffer Technology Corp |
Gemtek Technology and Waffer Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gemtek Technology and Waffer Technology
The main advantage of trading using opposite Gemtek Technology and Waffer Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gemtek Technology position performs unexpectedly, Waffer 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 Waffer Technology will offset losses from the drop in Waffer Technology's long position.| Gemtek Technology vs. Taiwan Semiconductor Manufacturing | Gemtek Technology vs. Yang Ming Marine | Gemtek Technology vs. ASE Industrial Holding | Gemtek Technology vs. AU Optronics |
| Waffer Technology vs. Catcher Technology Co | Waffer Technology vs. Acbel Polytech | Waffer Technology vs. Nan Ya Printed | Waffer Technology vs. Gemtek Technology 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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