Correlation Between Asmedia Technology and Syscom Computer
Can any of the company-specific risk be diversified away by investing in both Asmedia Technology and Syscom Computer 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 Asmedia Technology and Syscom Computer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asmedia Technology and Syscom Computer Engineering, you can compare the effects of market volatilities on Asmedia Technology and Syscom Computer 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 Asmedia Technology with a short position of Syscom Computer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asmedia Technology and Syscom Computer.
Diversification Opportunities for Asmedia Technology and Syscom Computer
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Asmedia and Syscom is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Asmedia Technology and Syscom Computer Engineering in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Syscom Computer Engi and Asmedia Technology 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 Asmedia Technology are associated (or correlated) with Syscom Computer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Syscom Computer Engi has no effect on the direction of Asmedia Technology i.e., Asmedia Technology and Syscom Computer go up and down completely randomly.
Pair Corralation between Asmedia Technology and Syscom Computer
Assuming the 90 days trading horizon Asmedia Technology is expected to generate 1.86 times more return on investment than Syscom Computer. However, Asmedia Technology is 1.86 times more volatile than Syscom Computer Engineering. It trades about -0.02 of its potential returns per unit of risk. Syscom Computer Engineering is currently generating about -0.17 per unit of risk. If you would invest 163,000 in Asmedia Technology on September 4, 2024 and sell it today you would lose (3,500) from holding Asmedia Technology or give up 2.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asmedia Technology vs. Syscom Computer Engineering
Performance |
| Timeline |
| Asmedia Technology |
| Syscom Computer Engi |
Asmedia Technology and Syscom Computer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asmedia Technology and Syscom Computer
The main advantage of trading using opposite Asmedia Technology and Syscom Computer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asmedia Technology position performs unexpectedly, Syscom Computer 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 Syscom Computer will offset losses from the drop in Syscom Computer's long position.| Asmedia Technology vs. Taiwan Semiconductor Manufacturing | Asmedia Technology vs. Yang Ming Marine | Asmedia Technology vs. AU Optronics | Asmedia Technology vs. Innolux Corp |
| Syscom Computer vs. Taiwan Semiconductor Manufacturing | Syscom Computer vs. Yang Ming Marine | Syscom Computer vs. AU Optronics | Syscom Computer vs. Innolux 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |