Correlation Between Aspeed Technology and President Securities
Can any of the company-specific risk be diversified away by investing in both Aspeed Technology and President Securities 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 Aspeed Technology and President Securities into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aspeed Technology and President Securities Corp, you can compare the effects of market volatilities on Aspeed Technology and President Securities 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 Aspeed Technology with a short position of President Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aspeed Technology and President Securities.
Diversification Opportunities for Aspeed Technology and President Securities
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aspeed and President is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Aspeed Technology and President Securities Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on President Securities Corp and Aspeed 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 Aspeed Technology are associated (or correlated) with President Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of President Securities Corp has no effect on the direction of Aspeed Technology i.e., Aspeed Technology and President Securities go up and down completely randomly.
Pair Corralation between Aspeed Technology and President Securities
Assuming the 90 days trading horizon Aspeed Technology is expected to under-perform the President Securities. In addition to that, Aspeed Technology is 3.63 times more volatile than President Securities Corp. It trades about -0.02 of its total potential returns per unit of risk. President Securities Corp is currently generating about 0.13 per unit of volatility. If you would invest 2,575 in President Securities Corp on September 1, 2024 and sell it today you would earn a total of 70.00 from holding President Securities Corp or generate 2.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Aspeed Technology vs. President Securities Corp
Performance |
| Timeline |
| Aspeed Technology |
| President Securities Corp |
Aspeed Technology and President Securities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aspeed Technology and President Securities
The main advantage of trading using opposite Aspeed Technology and President Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aspeed Technology position performs unexpectedly, President Securities 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 President Securities will offset losses from the drop in President Securities' long position.| Aspeed Technology vs. Asmedia Technology | Aspeed Technology vs. Silergy Corp | Aspeed Technology vs. Parade Technologies | Aspeed Technology vs. Wiwynn Corp |
| President Securities vs. Central Reinsurance Corp | President Securities vs. Huaku Development Co | President Securities vs. Fubon Financial Holding |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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