Correlation Between Asmedia Technology and Ever Clear
Can any of the company-specific risk be diversified away by investing in both Asmedia Technology and Ever Clear 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 Ever Clear into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asmedia Technology and Ever Clear Environmental Eng, you can compare the effects of market volatilities on Asmedia Technology and Ever Clear 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 Ever Clear. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asmedia Technology and Ever Clear.
Diversification Opportunities for Asmedia Technology and Ever Clear
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Asmedia and Ever is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Asmedia Technology and Ever Clear Environmental Eng in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ever Clear Environme 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 Ever Clear. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ever Clear Environme has no effect on the direction of Asmedia Technology i.e., Asmedia Technology and Ever Clear go up and down completely randomly.
Pair Corralation between Asmedia Technology and Ever Clear
Assuming the 90 days trading horizon Asmedia Technology is expected to generate 6.62 times more return on investment than Ever Clear. However, Asmedia Technology is 6.62 times more volatile than Ever Clear Environmental Eng. It trades about 0.01 of its potential returns per unit of risk. Ever Clear Environmental Eng is currently generating about -0.22 per unit of risk. If you would invest 164,500 in Asmedia Technology on August 27, 2024 and sell it today you would lose (500.00) from holding Asmedia Technology or give up 0.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asmedia Technology vs. Ever Clear Environmental Eng
Performance |
| Timeline |
| Asmedia Technology |
| Ever Clear Environme |
Asmedia Technology and Ever Clear Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asmedia Technology and Ever Clear
The main advantage of trading using opposite Asmedia Technology and Ever Clear positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asmedia Technology position performs unexpectedly, Ever Clear 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 Ever Clear will offset losses from the drop in Ever Clear's long position.| Asmedia Technology vs. Alchip Technologies | Asmedia Technology vs. Aspeed Technology | Asmedia Technology vs. Silergy Corp | Asmedia Technology vs. Global Unichip Corp |
| Ever Clear vs. Gigastorage Corp | Ever Clear vs. V Tac Technology Co | Ever Clear vs. Otsuka Information Technology | Ever Clear vs. Asmedia Technology |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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