Correlation Between Concraft Holding and Advantech
Can any of the company-specific risk be diversified away by investing in both Concraft Holding and Advantech 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 Concraft Holding and Advantech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Concraft Holding Co and Advantech Co, you can compare the effects of market volatilities on Concraft Holding and Advantech 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 Concraft Holding with a short position of Advantech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Concraft Holding and Advantech.
Diversification Opportunities for Concraft Holding and Advantech
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Concraft and Advantech is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Concraft Holding Co and Advantech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advantech and Concraft Holding 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 Concraft Holding Co are associated (or correlated) with Advantech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advantech has no effect on the direction of Concraft Holding i.e., Concraft Holding and Advantech go up and down completely randomly.
Pair Corralation between Concraft Holding and Advantech
Assuming the 90 days trading horizon Concraft Holding Co is expected to generate 1.81 times more return on investment than Advantech. However, Concraft Holding is 1.81 times more volatile than Advantech Co. It trades about 0.02 of its potential returns per unit of risk. Advantech Co is currently generating about 0.0 per unit of risk. If you would invest 1,545 in Concraft Holding Co on August 26, 2024 and sell it today you would earn a total of 75.00 from holding Concraft Holding Co or generate 4.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Concraft Holding Co vs. Advantech Co
Performance |
| Timeline |
| Concraft Holding |
| Advantech |
Concraft Holding and Advantech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Concraft Holding and Advantech
The main advantage of trading using opposite Concraft Holding and Advantech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Concraft Holding position performs unexpectedly, Advantech 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 Advantech will offset losses from the drop in Advantech's long position.| Concraft Holding vs. Advantech Co | Concraft Holding vs. IEI Integration Corp | Concraft Holding vs. Flytech Technology Co | Concraft Holding vs. ADLINK Technology |
| Advantech vs. Novatek Microelectronics Corp | Advantech vs. Quanta Computer | Advantech 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |