Correlation Between Wistron Information and Fun Yours
Can any of the company-specific risk be diversified away by investing in both Wistron Information and Fun Yours 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 Wistron Information and Fun Yours into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wistron Information Technology and Fun Yours Technology, you can compare the effects of market volatilities on Wistron Information and Fun Yours 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 Wistron Information with a short position of Fun Yours. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wistron Information and Fun Yours.
Diversification Opportunities for Wistron Information and Fun Yours
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Wistron and Fun is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Wistron Information Technology and Fun Yours Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fun Yours Technology and Wistron Information 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 Wistron Information Technology are associated (or correlated) with Fun Yours. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fun Yours Technology has no effect on the direction of Wistron Information i.e., Wistron Information and Fun Yours go up and down completely randomly.
Pair Corralation between Wistron Information and Fun Yours
Assuming the 90 days trading horizon Wistron Information Technology is expected to under-perform the Fun Yours. In addition to that, Wistron Information is 1.12 times more volatile than Fun Yours Technology. It trades about -0.04 of its total potential returns per unit of risk. Fun Yours Technology is currently generating about -0.02 per unit of volatility. If you would invest 5,090 in Fun Yours Technology on September 3, 2024 and sell it today you would lose (80.00) from holding Fun Yours Technology or give up 1.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wistron Information Technology vs. Fun Yours Technology
Performance |
| Timeline |
| Wistron Information |
| Fun Yours Technology |
Wistron Information and Fun Yours Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wistron Information and Fun Yours
The main advantage of trading using opposite Wistron Information and Fun Yours positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wistron Information position performs unexpectedly, Fun Yours 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 Fun Yours will offset losses from the drop in Fun Yours' long position.| Wistron Information vs. Digital China Holdings | Wistron Information vs. Acer E Enabling Service | Wistron Information vs. Sysage Technology Co | Wistron Information vs. Green World Fintech |
| Fun Yours vs. Adata Technology Co | Fun Yours vs. Fubon Financial Holding | Fun Yours vs. Wistron Information Technology | Fun Yours vs. Easywell Biomedicals |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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