Correlation Between Asmedia Technology and Sixxon Tech
Can any of the company-specific risk be diversified away by investing in both Asmedia Technology and Sixxon Tech 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 Sixxon Tech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asmedia Technology and Sixxon Tech Co, you can compare the effects of market volatilities on Asmedia Technology and Sixxon Tech 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 Sixxon Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asmedia Technology and Sixxon Tech.
Diversification Opportunities for Asmedia Technology and Sixxon Tech
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Asmedia and Sixxon is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Asmedia Technology and Sixxon Tech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sixxon Tech 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 Sixxon Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sixxon Tech has no effect on the direction of Asmedia Technology i.e., Asmedia Technology and Sixxon Tech go up and down completely randomly.
Pair Corralation between Asmedia Technology and Sixxon Tech
Assuming the 90 days trading horizon Asmedia Technology is expected to generate 0.57 times more return on investment than Sixxon Tech. However, Asmedia Technology is 1.74 times less risky than Sixxon Tech. It trades about -0.02 of its potential returns per unit of risk. Sixxon Tech Co is currently generating about -0.27 per unit of risk. If you would invest 159,500 in Asmedia Technology on August 30, 2024 and sell it today you would lose (3,500) from holding Asmedia Technology or give up 2.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 86.96% |
| Values | Daily Returns |
Asmedia Technology vs. Sixxon Tech Co
Performance |
| Timeline |
| Asmedia Technology |
| Sixxon Tech |
Asmedia Technology and Sixxon Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asmedia Technology and Sixxon Tech
The main advantage of trading using opposite Asmedia Technology and Sixxon Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asmedia Technology position performs unexpectedly, Sixxon Tech 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 Sixxon Tech will offset losses from the drop in Sixxon Tech's long position.| Asmedia Technology vs. Alchip Technologies | Asmedia Technology vs. Aspeed Technology | Asmedia Technology vs. Silergy Corp | Asmedia Technology vs. Global Unichip Corp |
| Sixxon Tech vs. Cameo Communications | Sixxon Tech vs. United Radiant Technology | Sixxon Tech vs. Wholetech System Hitech | Sixxon Tech vs. AzureWave Technologies |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |