Correlation Between Asmedia Technology and United Radiant
Can any of the company-specific risk be diversified away by investing in both Asmedia Technology and United Radiant 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 United Radiant into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asmedia Technology and United Radiant Technology, you can compare the effects of market volatilities on Asmedia Technology and United Radiant 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 United Radiant. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asmedia Technology and United Radiant.
Diversification Opportunities for Asmedia Technology and United Radiant
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Asmedia and United is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Asmedia Technology and United Radiant Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United Radiant 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 United Radiant. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United Radiant Technology has no effect on the direction of Asmedia Technology i.e., Asmedia Technology and United Radiant go up and down completely randomly.
Pair Corralation between Asmedia Technology and United Radiant
Assuming the 90 days trading horizon Asmedia Technology is expected to generate 2.18 times more return on investment than United Radiant. However, Asmedia Technology is 2.18 times more volatile than United Radiant Technology. It trades about 0.07 of its potential returns per unit of risk. United Radiant Technology is currently generating about 0.02 per unit of risk. If you would invest 89,834 in Asmedia Technology on October 28, 2024 and sell it today you would earn a total of 117,166 from holding Asmedia Technology or generate 130.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Asmedia Technology vs. United Radiant Technology
Performance |
| Timeline |
| Asmedia Technology |
| United Radiant Technology |
Asmedia Technology and United Radiant Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asmedia Technology and United Radiant
The main advantage of trading using opposite Asmedia Technology and United Radiant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asmedia Technology position performs unexpectedly, United Radiant 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 United Radiant will offset losses from the drop in United Radiant's long position.| Asmedia Technology vs. Alchip Technologies | Asmedia Technology vs. Aspeed Technology | Asmedia Technology vs. Silergy Corp | Asmedia Technology vs. Global Unichip Corp |
| United Radiant vs. Advantech Co | United Radiant vs. IEI Integration Corp | United Radiant vs. Flytech Technology Co | United Radiant vs. Ennoconn 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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