Correlation Between WiseChip Semiconductor and Antec
Can any of the company-specific risk be diversified away by investing in both WiseChip Semiconductor 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 WiseChip Semiconductor and Antec into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WiseChip Semiconductor and Antec Inc, you can compare the effects of market volatilities on WiseChip Semiconductor 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 WiseChip Semiconductor with a short position of Antec. Check out your portfolio center. Please also check ongoing floating volatility patterns of WiseChip Semiconductor and Antec.
Diversification Opportunities for WiseChip Semiconductor and Antec
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between WiseChip and Antec is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding WiseChip Semiconductor and Antec Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Antec Inc and WiseChip Semiconductor 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 WiseChip Semiconductor 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 WiseChip Semiconductor i.e., WiseChip Semiconductor and Antec go up and down completely randomly.
Pair Corralation between WiseChip Semiconductor and Antec
Assuming the 90 days trading horizon WiseChip Semiconductor is expected to generate 0.47 times more return on investment than Antec. However, WiseChip Semiconductor is 2.15 times less risky than Antec. It trades about -0.02 of its potential returns per unit of risk. Antec Inc is currently generating about -0.02 per unit of risk. If you would invest 4,075 in WiseChip Semiconductor on September 15, 2024 and sell it today you would lose (710.00) from holding WiseChip Semiconductor or give up 17.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.62% |
| Values | Daily Returns |
WiseChip Semiconductor vs. Antec Inc
Performance |
| Timeline |
| WiseChip Semiconductor |
| Antec Inc |
WiseChip Semiconductor and Antec Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WiseChip Semiconductor and Antec
The main advantage of trading using opposite WiseChip Semiconductor and Antec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WiseChip Semiconductor 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.| WiseChip Semiconductor vs. AU Optronics | WiseChip Semiconductor vs. Innolux Corp | WiseChip Semiconductor vs. Ruentex Development Co | WiseChip Semiconductor vs. Novatek Microelectronics Corp |
| Antec vs. Wei Chuan Foods | Antec vs. WiseChip Semiconductor | Antec vs. Compal Broadband Networks | Antec vs. Elite Semiconductor Memory |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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