Correlation Between Asmedia Technology and Chicony Power
Can any of the company-specific risk be diversified away by investing in both Asmedia Technology and Chicony Power 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 Chicony Power into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asmedia Technology and Chicony Power Technology, you can compare the effects of market volatilities on Asmedia Technology and Chicony Power 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 Chicony Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asmedia Technology and Chicony Power.
Diversification Opportunities for Asmedia Technology and Chicony Power
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Asmedia and Chicony is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Asmedia Technology and Chicony Power Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chicony Power 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 Chicony Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chicony Power Technology has no effect on the direction of Asmedia Technology i.e., Asmedia Technology and Chicony Power go up and down completely randomly.
Pair Corralation between Asmedia Technology and Chicony Power
Assuming the 90 days trading horizon Asmedia Technology is expected to generate 1.73 times more return on investment than Chicony Power. However, Asmedia Technology is 1.73 times more volatile than Chicony Power Technology. It trades about 0.11 of its potential returns per unit of risk. Chicony Power Technology is currently generating about 0.11 per unit of risk. If you would invest 197,500 in Asmedia Technology on October 30, 2024 and sell it today you would earn a total of 9,500 from holding Asmedia Technology or generate 4.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asmedia Technology vs. Chicony Power Technology
Performance |
| Timeline |
| Asmedia Technology |
| Chicony Power Technology |
Asmedia Technology and Chicony Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asmedia Technology and Chicony Power
The main advantage of trading using opposite Asmedia Technology and Chicony Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asmedia Technology position performs unexpectedly, Chicony Power 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 Chicony Power will offset losses from the drop in Chicony Power's long position.| Asmedia Technology vs. Alchip Technologies | Asmedia Technology vs. Aspeed Technology | Asmedia Technology vs. Silergy Corp | Asmedia Technology vs. Global Unichip Corp |
| Chicony Power vs. Elitegroup Computer Systems | Chicony Power vs. RiTdisplay Corp | Chicony Power vs. Est Global Apparel | Chicony Power vs. China Airlines |
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.
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