Correlation Between Pegatron Corp and Antec
Can any of the company-specific risk be diversified away by investing in both Pegatron Corp 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 Pegatron Corp and Antec into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pegatron Corp and Antec Inc, you can compare the effects of market volatilities on Pegatron Corp 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 Pegatron Corp with a short position of Antec. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pegatron Corp and Antec.
Diversification Opportunities for Pegatron Corp and Antec
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Pegatron and Antec is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Pegatron Corp and Antec Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Antec Inc and Pegatron Corp 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 Pegatron Corp 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 Pegatron Corp i.e., Pegatron Corp and Antec go up and down completely randomly.
Pair Corralation between Pegatron Corp and Antec
Assuming the 90 days trading horizon Pegatron Corp is expected to generate 0.36 times more return on investment than Antec. However, Pegatron Corp is 2.75 times less risky than Antec. It trades about 0.05 of its potential returns per unit of risk. Antec Inc is currently generating about -0.03 per unit of risk. If you would invest 8,170 in Pegatron Corp on August 25, 2024 and sell it today you would earn a total of 1,590 from holding Pegatron Corp or generate 19.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pegatron Corp vs. Antec Inc
Performance |
| Timeline |
| Pegatron Corp |
| Antec Inc |
Pegatron Corp and Antec Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pegatron Corp and Antec
The main advantage of trading using opposite Pegatron Corp and Antec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pegatron Corp 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.| Pegatron Corp vs. Wistron Corp | Pegatron Corp vs. Quanta Computer | Pegatron Corp vs. Compal Electronics | Pegatron Corp vs. Catcher Technology Co |
| Antec vs. Advantech Co | Antec vs. IEI Integration Corp | Antec vs. Flytech Technology Co | Antec vs. ADLINK 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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