Correlation Between Fitipower Integrated and Acbel Polytech
Can any of the company-specific risk be diversified away by investing in both Fitipower Integrated and Acbel Polytech 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 Fitipower Integrated and Acbel Polytech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fitipower Integrated Technology and Acbel Polytech, you can compare the effects of market volatilities on Fitipower Integrated and Acbel Polytech 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 Fitipower Integrated with a short position of Acbel Polytech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fitipower Integrated and Acbel Polytech.
Diversification Opportunities for Fitipower Integrated and Acbel Polytech
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Fitipower and Acbel is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Fitipower Integrated Technolog and Acbel Polytech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acbel Polytech and Fitipower Integrated 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 Fitipower Integrated Technology are associated (or correlated) with Acbel Polytech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acbel Polytech has no effect on the direction of Fitipower Integrated i.e., Fitipower Integrated and Acbel Polytech go up and down completely randomly.
Pair Corralation between Fitipower Integrated and Acbel Polytech
Assuming the 90 days trading horizon Fitipower Integrated Technology is expected to generate 1.19 times more return on investment than Acbel Polytech. However, Fitipower Integrated is 1.19 times more volatile than Acbel Polytech. It trades about 0.0 of its potential returns per unit of risk. Acbel Polytech is currently generating about -0.03 per unit of risk. If you would invest 26,640 in Fitipower Integrated Technology on August 25, 2024 and sell it today you would lose (2,640) from holding Fitipower Integrated Technology or give up 9.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fitipower Integrated Technolog vs. Acbel Polytech
Performance |
| Timeline |
| Fitipower Integrated |
| Acbel Polytech |
Fitipower Integrated and Acbel Polytech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fitipower Integrated and Acbel Polytech
The main advantage of trading using opposite Fitipower Integrated and Acbel Polytech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fitipower Integrated position performs unexpectedly, Acbel Polytech 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 Acbel Polytech will offset losses from the drop in Acbel Polytech's long position.| Fitipower Integrated vs. FocalTech Systems Co | Fitipower Integrated vs. Novatek Microelectronics Corp | Fitipower Integrated vs. Sitronix Technology Corp | Fitipower Integrated vs. AP Memory Technology |
| Acbel Polytech vs. Sunny Friend Environmental | Acbel Polytech vs. TTET Union Corp | Acbel Polytech vs. ECOVE Environment Corp | Acbel Polytech vs. Yulon Finance 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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