Correlation Between Asmedia Technology and Univacco Technology
Can any of the company-specific risk be diversified away by investing in both Asmedia Technology and Univacco Technology 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 Univacco Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asmedia Technology and Univacco Technology, you can compare the effects of market volatilities on Asmedia Technology and Univacco Technology 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 Univacco Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asmedia Technology and Univacco Technology.
Diversification Opportunities for Asmedia Technology and Univacco Technology
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Asmedia and Univacco is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Asmedia Technology and Univacco Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Univacco 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 Univacco Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Univacco Technology has no effect on the direction of Asmedia Technology i.e., Asmedia Technology and Univacco Technology go up and down completely randomly.
Pair Corralation between Asmedia Technology and Univacco Technology
Assuming the 90 days trading horizon Asmedia Technology is expected to generate 0.59 times more return on investment than Univacco Technology. However, Asmedia Technology is 1.69 times less risky than Univacco Technology. It trades about 0.03 of its potential returns per unit of risk. Univacco Technology is currently generating about -0.04 per unit of risk. If you would invest 160,000 in Asmedia Technology on September 2, 2024 and sell it today you would earn a total of 1,500 from holding Asmedia Technology or generate 0.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asmedia Technology vs. Univacco Technology
Performance |
| Timeline |
| Asmedia Technology |
| Univacco Technology |
Asmedia Technology and Univacco Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asmedia Technology and Univacco Technology
The main advantage of trading using opposite Asmedia Technology and Univacco Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asmedia Technology position performs unexpectedly, Univacco Technology 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 Univacco Technology will offset losses from the drop in Univacco Technology's long position.| Asmedia Technology vs. Alchip Technologies | Asmedia Technology vs. Aspeed Technology | Asmedia Technology vs. Silergy Corp | Asmedia Technology vs. Global Unichip Corp |
| Univacco Technology vs. PChome Online | Univacco Technology vs. Shanghai Commercial Savings | Univacco Technology vs. Sinopac Financial Holdings | Univacco Technology vs. Yi Jinn Industrial |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |