Correlation Between Aspeed Technology and Aker Technology
Can any of the company-specific risk be diversified away by investing in both Aspeed Technology and Aker Technology 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 Aker Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aspeed Technology and Aker Technology Co, you can compare the effects of market volatilities on Aspeed Technology and Aker Technology 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 Aker Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aspeed Technology and Aker Technology.
Diversification Opportunities for Aspeed Technology and Aker Technology
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Aspeed and Aker is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Aspeed Technology and Aker Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aker Technology 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 Aker Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aker Technology has no effect on the direction of Aspeed Technology i.e., Aspeed Technology and Aker Technology go up and down completely randomly.
Pair Corralation between Aspeed Technology and Aker Technology
Assuming the 90 days trading horizon Aspeed Technology is expected to under-perform the Aker Technology. But the stock apears to be less risky and, when comparing its historical volatility, Aspeed Technology is 1.24 times less risky than Aker Technology. The stock trades about -0.08 of its potential returns per unit of risk. The Aker Technology Co is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 2,170 in Aker Technology Co on September 13, 2024 and sell it today you would earn a total of 300.00 from holding Aker Technology Co or generate 13.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aspeed Technology vs. Aker Technology Co
Performance |
| Timeline |
| Aspeed Technology |
| Aker Technology |
Aspeed Technology and Aker Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aspeed Technology and Aker Technology
The main advantage of trading using opposite Aspeed Technology and Aker Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aspeed Technology position performs unexpectedly, Aker Technology 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 Aker Technology will offset losses from the drop in Aker Technology's long position.| Aspeed Technology vs. Asmedia Technology | Aspeed Technology vs. Silergy Corp | Aspeed Technology vs. Parade Technologies | Aspeed Technology vs. Wiwynn Corp |
| Aker Technology vs. Farglory FTZ Investment | Aker Technology vs. Quanta Computer | Aker Technology vs. Sunspring Metal Corp | Aker Technology vs. Louisa Professional Coffee |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |