Correlation Between Asmedia Technology and Fitipower Integrated
Can any of the company-specific risk be diversified away by investing in both Asmedia Technology and Fitipower 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 Fitipower 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 Fitipower Integrated Technology, you can compare the effects of market volatilities on Asmedia Technology and Fitipower 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 Fitipower Integrated. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asmedia Technology and Fitipower Integrated.
Diversification Opportunities for Asmedia Technology and Fitipower Integrated
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Asmedia and Fitipower is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Asmedia Technology and Fitipower Integrated Technolog in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fitipower 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 Fitipower Integrated. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fitipower Integrated has no effect on the direction of Asmedia Technology i.e., Asmedia Technology and Fitipower Integrated go up and down completely randomly.
Pair Corralation between Asmedia Technology and Fitipower Integrated
Assuming the 90 days trading horizon Asmedia Technology is expected to generate 1.12 times more return on investment than Fitipower Integrated. However, Asmedia Technology is 1.12 times more volatile than Fitipower Integrated Technology. It trades about 0.0 of its potential returns per unit of risk. Fitipower Integrated Technology is currently generating about -0.23 per unit of risk. If you would invest 164,500 in Asmedia Technology on August 29, 2024 and sell it today you would lose (1,000.00) from holding Asmedia Technology or give up 0.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asmedia Technology vs. Fitipower Integrated Technolog
Performance |
| Timeline |
| Asmedia Technology |
| Fitipower Integrated |
Asmedia Technology and Fitipower Integrated Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asmedia Technology and Fitipower Integrated
The main advantage of trading using opposite Asmedia Technology and Fitipower Integrated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asmedia Technology position performs unexpectedly, Fitipower 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 Fitipower Integrated will offset losses from the drop in Fitipower 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 |
| Fitipower Integrated vs. Global Unichip Corp | Fitipower Integrated vs. Asmedia Technology | Fitipower Integrated vs. Unimicron Technology Corp | Fitipower Integrated vs. Novatek Microelectronics 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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