Correlation Between Asmedia Technology and Foxsemicon Integrated
Can any of the company-specific risk be diversified away by investing in both Asmedia Technology and Foxsemicon Integrated 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 Foxsemicon Integrated into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asmedia Technology and Foxsemicon Integrated Technology, you can compare the effects of market volatilities on Asmedia Technology and Foxsemicon Integrated 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 Foxsemicon Integrated. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asmedia Technology and Foxsemicon Integrated.
Diversification Opportunities for Asmedia Technology and Foxsemicon Integrated
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Asmedia and Foxsemicon is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Asmedia Technology and Foxsemicon Integrated Technolo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Foxsemicon Integrated 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 Foxsemicon Integrated. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Foxsemicon Integrated has no effect on the direction of Asmedia Technology i.e., Asmedia Technology and Foxsemicon Integrated go up and down completely randomly.
Pair Corralation between Asmedia Technology and Foxsemicon Integrated
Assuming the 90 days trading horizon Asmedia Technology is expected to generate 1.46 times more return on investment than Foxsemicon Integrated. However, Asmedia Technology is 1.46 times more volatile than Foxsemicon Integrated Technology. It trades about 0.0 of its potential returns per unit of risk. Foxsemicon Integrated Technology is currently generating about -0.24 per unit of risk. If you would invest 163,000 in Asmedia Technology on September 1, 2024 and sell it today you would lose (1,500) from holding Asmedia Technology or give up 0.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Asmedia Technology vs. Foxsemicon Integrated Technolo
Performance |
| Timeline |
| Asmedia Technology |
| Foxsemicon Integrated |
Asmedia Technology and Foxsemicon Integrated Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asmedia Technology and Foxsemicon Integrated
The main advantage of trading using opposite Asmedia Technology and Foxsemicon Integrated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asmedia Technology position performs unexpectedly, Foxsemicon Integrated 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 Foxsemicon Integrated will offset losses from the drop in Foxsemicon Integrated's long position.| Asmedia Technology vs. Alchip Technologies | Asmedia Technology vs. Aspeed Technology | Asmedia Technology vs. Silergy Corp | Asmedia Technology vs. Global Unichip 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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