Correlation Between Asmedia Technology and Gamania Digital
Can any of the company-specific risk be diversified away by investing in both Asmedia Technology and Gamania Digital 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 Gamania Digital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asmedia Technology and Gamania Digital Entertainment, you can compare the effects of market volatilities on Asmedia Technology and Gamania Digital 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 Gamania Digital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asmedia Technology and Gamania Digital.
Diversification Opportunities for Asmedia Technology and Gamania Digital
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Asmedia and Gamania is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Asmedia Technology and Gamania Digital Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gamania Digital Ente 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 Gamania Digital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gamania Digital Ente has no effect on the direction of Asmedia Technology i.e., Asmedia Technology and Gamania Digital go up and down completely randomly.
Pair Corralation between Asmedia Technology and Gamania Digital
Assuming the 90 days trading horizon Asmedia Technology is expected to generate 2.04 times more return on investment than Gamania Digital. However, Asmedia Technology is 2.04 times more volatile than Gamania Digital Entertainment. It trades about 0.06 of its potential returns per unit of risk. Gamania Digital Entertainment is currently generating about 0.05 per unit of risk. If you would invest 77,589 in Asmedia Technology on September 3, 2024 and sell it today you would earn a total of 83,911 from holding Asmedia Technology or generate 108.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.78% |
| Values | Daily Returns |
Asmedia Technology vs. Gamania Digital Entertainment
Performance |
| Timeline |
| Asmedia Technology |
| Gamania Digital Ente |
Asmedia Technology and Gamania Digital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asmedia Technology and Gamania Digital
The main advantage of trading using opposite Asmedia Technology and Gamania Digital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asmedia Technology position performs unexpectedly, Gamania Digital 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 Gamania Digital will offset losses from the drop in Gamania Digital's long position.| Asmedia Technology vs. Taiwan Semiconductor Manufacturing | Asmedia Technology vs. Yang Ming Marine | Asmedia Technology vs. ASE Industrial Holding | Asmedia Technology vs. AU Optronics |
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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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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