Correlation Between Pegatron Corp and Egis Technology
Can any of the company-specific risk be diversified away by investing in both Pegatron Corp and Egis 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 Pegatron Corp and Egis Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pegatron Corp and Egis Technology, you can compare the effects of market volatilities on Pegatron Corp and Egis 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 Pegatron Corp with a short position of Egis Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pegatron Corp and Egis Technology.
Diversification Opportunities for Pegatron Corp and Egis Technology
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Pegatron and Egis is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Pegatron Corp and Egis Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Egis Technology 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 Egis Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Egis Technology has no effect on the direction of Pegatron Corp i.e., Pegatron Corp and Egis Technology go up and down completely randomly.
Pair Corralation between Pegatron Corp and Egis Technology
Assuming the 90 days trading horizon Pegatron Corp is expected to generate 0.6 times more return on investment than Egis Technology. However, Pegatron Corp is 1.67 times less risky than Egis Technology. It trades about -0.1 of its potential returns per unit of risk. Egis Technology is currently generating about -0.18 per unit of risk. If you would invest 10,350 in Pegatron Corp on September 2, 2024 and sell it today you would lose (920.00) from holding Pegatron Corp or give up 8.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pegatron Corp vs. Egis Technology
Performance |
| Timeline |
| Pegatron Corp |
| Egis Technology |
Pegatron Corp and Egis Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pegatron Corp and Egis Technology
The main advantage of trading using opposite Pegatron Corp and Egis Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pegatron Corp position performs unexpectedly, Egis 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 Egis Technology will offset losses from the drop in Egis Technology's long position.| Pegatron Corp vs. Wistron Corp | Pegatron Corp vs. Quanta Computer | Pegatron Corp vs. Compal Electronics | Pegatron Corp vs. Catcher Technology Co |
| Egis Technology vs. WIN Semiconductors | Egis Technology vs. Aspeed Technology | Egis Technology vs. LARGAN Precision Co | Egis Technology vs. Novatek Microelectronics Corp |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |