Correlation Between Asmedia Technology and Ta Liang
Can any of the company-specific risk be diversified away by investing in both Asmedia Technology and Ta Liang 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 Ta Liang into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asmedia Technology and Ta Liang Technology, you can compare the effects of market volatilities on Asmedia Technology and Ta Liang 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 Ta Liang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asmedia Technology and Ta Liang.
Diversification Opportunities for Asmedia Technology and Ta Liang
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Asmedia and 3167 is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Asmedia Technology and Ta Liang Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ta Liang Technology 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 Ta Liang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ta Liang Technology has no effect on the direction of Asmedia Technology i.e., Asmedia Technology and Ta Liang go up and down completely randomly.
Pair Corralation between Asmedia Technology and Ta Liang
If you would invest (100.00) in Ta Liang Technology on November 2, 2024 and sell it today you would earn a total of 100.00 from holding Ta Liang Technology or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Asmedia Technology vs. Ta Liang Technology
Performance |
| Timeline |
| Asmedia Technology |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Ta Liang Technology |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Asmedia Technology and Ta Liang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asmedia Technology and Ta Liang
The main advantage of trading using opposite Asmedia Technology and Ta Liang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asmedia Technology position performs unexpectedly, Ta Liang 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 Ta Liang will offset losses from the drop in Ta Liang's long position.The idea behind Asmedia Technology and Ta Liang Technology pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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