Correlation Between Asmedia Technology and TUL
Can any of the company-specific risk be diversified away by investing in both Asmedia Technology and TUL 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 TUL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asmedia Technology and TUL Corporation, you can compare the effects of market volatilities on Asmedia Technology and TUL 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 TUL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asmedia Technology and TUL.
Diversification Opportunities for Asmedia Technology and TUL
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Asmedia and TUL is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Asmedia Technology and TUL Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TUL Corporation 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 TUL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TUL Corporation has no effect on the direction of Asmedia Technology i.e., Asmedia Technology and TUL go up and down completely randomly.
Pair Corralation between Asmedia Technology and TUL
Assuming the 90 days trading horizon Asmedia Technology is expected to under-perform the TUL. In addition to that, Asmedia Technology is 1.3 times more volatile than TUL Corporation. It trades about -0.02 of its total potential returns per unit of risk. TUL Corporation is currently generating about -0.01 per unit of volatility. If you would invest 8,150 in TUL Corporation on September 2, 2024 and sell it today you would lose (810.00) from holding TUL Corporation or give up 9.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asmedia Technology vs. TUL Corp.
Performance |
| Timeline |
| Asmedia Technology |
| TUL Corporation |
Asmedia Technology and TUL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asmedia Technology and TUL
The main advantage of trading using opposite Asmedia Technology and TUL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asmedia Technology position performs unexpectedly, TUL 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 TUL will offset losses from the drop in TUL's long position.| Asmedia Technology vs. Alchip Technologies | Asmedia Technology vs. Aspeed Technology | Asmedia Technology vs. Silergy Corp | Asmedia Technology vs. Global Unichip Corp |
| TUL vs. TWOWAY Communications | TUL vs. Kao Fong Machinery | TUL vs. Chung Hsin Electric Machinery | TUL vs. Taiwan Mobile Co |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |