Correlation Between Aspeed Technology and Gamania Digital
Can any of the company-specific risk be diversified away by investing in both Aspeed 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 Aspeed 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 Aspeed Technology and Gamania Digital Entertainment, you can compare the effects of market volatilities on Aspeed 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 Aspeed Technology with a short position of Gamania Digital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aspeed Technology and Gamania Digital.
Diversification Opportunities for Aspeed Technology and Gamania Digital
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Aspeed and Gamania is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Aspeed 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 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 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 Aspeed Technology i.e., Aspeed Technology and Gamania Digital go up and down completely randomly.
Pair Corralation between Aspeed Technology and Gamania Digital
Assuming the 90 days trading horizon Aspeed Technology is expected to generate 4.29 times more return on investment than Gamania Digital. However, Aspeed Technology is 4.29 times more volatile than Gamania Digital Entertainment. It trades about 0.18 of its potential returns per unit of risk. Gamania Digital Entertainment is currently generating about 0.21 per unit of risk. If you would invest 341,000 in Aspeed Technology on November 18, 2024 and sell it today you would earn a total of 36,000 from holding Aspeed Technology or generate 10.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aspeed Technology vs. Gamania Digital Entertainment
Performance |
| Timeline |
| Aspeed Technology |
| Gamania Digital Ente |
Aspeed Technology and Gamania Digital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aspeed Technology and Gamania Digital
The main advantage of trading using opposite Aspeed Technology and Gamania Digital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aspeed 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.| Aspeed Technology vs. Asmedia Technology | Aspeed Technology vs. Silergy Corp | Aspeed Technology vs. Parade Technologies | Aspeed Technology vs. Wiwynn Corp |
| Gamania Digital vs. Soft World International | Gamania Digital vs. International Games System | Gamania Digital vs. Softstar Entertainment | Gamania Digital vs. Chinese Gamer International |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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