Correlation Between Asmedia Technology and SynCore Biotechnology
Can any of the company-specific risk be diversified away by investing in both Asmedia Technology and SynCore Biotechnology 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 SynCore Biotechnology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asmedia Technology and SynCore Biotechnology Co, you can compare the effects of market volatilities on Asmedia Technology and SynCore Biotechnology 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 SynCore Biotechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asmedia Technology and SynCore Biotechnology.
Diversification Opportunities for Asmedia Technology and SynCore Biotechnology
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Asmedia and SynCore is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Asmedia Technology and SynCore Biotechnology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SynCore Biotechnology 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 SynCore Biotechnology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SynCore Biotechnology has no effect on the direction of Asmedia Technology i.e., Asmedia Technology and SynCore Biotechnology go up and down completely randomly.
Pair Corralation between Asmedia Technology and SynCore Biotechnology
Assuming the 90 days trading horizon Asmedia Technology is expected to generate 1.69 times more return on investment than SynCore Biotechnology. However, Asmedia Technology is 1.69 times more volatile than SynCore Biotechnology Co. It trades about 0.02 of its potential returns per unit of risk. SynCore Biotechnology Co is currently generating about -0.07 per unit of risk. If you would invest 159,500 in Asmedia Technology on August 30, 2024 and sell it today you would earn a total of 500.00 from holding Asmedia Technology or generate 0.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asmedia Technology vs. SynCore Biotechnology Co
Performance |
| Timeline |
| Asmedia Technology |
| SynCore Biotechnology |
Asmedia Technology and SynCore Biotechnology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asmedia Technology and SynCore Biotechnology
The main advantage of trading using opposite Asmedia Technology and SynCore Biotechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asmedia Technology position performs unexpectedly, SynCore Biotechnology 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 SynCore Biotechnology will offset losses from the drop in SynCore Biotechnology's long position.| Asmedia Technology vs. Alchip Technologies | Asmedia Technology vs. Aspeed Technology | Asmedia Technology vs. Silergy Corp | Asmedia Technology vs. Global Unichip Corp |
| SynCore Biotechnology vs. Shan Loong Transportation Co | SynCore Biotechnology vs. STL Technology Co | SynCore Biotechnology vs. Chung Hwa Food | SynCore Biotechnology vs. United Radiant Technology |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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