Correlation Between Excelliance MOS and Advanced Power
Can any of the company-specific risk be diversified away by investing in both Excelliance MOS and Advanced 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 Excelliance MOS and Advanced Power into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Excelliance MOS and Advanced Power Electronics, you can compare the effects of market volatilities on Excelliance MOS and Advanced 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 Excelliance MOS with a short position of Advanced Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Excelliance MOS and Advanced Power.
Diversification Opportunities for Excelliance MOS and Advanced Power
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Excelliance and Advanced is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Excelliance MOS and Advanced Power Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advanced Power Elect and Excelliance MOS 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 Excelliance MOS are associated (or correlated) with Advanced Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advanced Power Elect has no effect on the direction of Excelliance MOS i.e., Excelliance MOS and Advanced Power go up and down completely randomly.
Pair Corralation between Excelliance MOS and Advanced Power
Assuming the 90 days trading horizon Excelliance MOS is expected to under-perform the Advanced Power. But the stock apears to be less risky and, when comparing its historical volatility, Excelliance MOS is 1.17 times less risky than Advanced Power. The stock trades about -0.05 of its potential returns per unit of risk. The Advanced Power Electronics is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 10,850 in Advanced Power Electronics on September 2, 2024 and sell it today you would lose (1,730) from holding Advanced Power Electronics or give up 15.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Excelliance MOS vs. Advanced Power Electronics
Performance |
| Timeline |
| Excelliance MOS |
| Advanced Power Elect |
Excelliance MOS and Advanced Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Excelliance MOS and Advanced Power
The main advantage of trading using opposite Excelliance MOS and Advanced Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Excelliance MOS position performs unexpectedly, Advanced 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 Advanced Power will offset losses from the drop in Advanced Power's long position.| Excelliance MOS vs. Sinopower Semiconductor | Excelliance MOS vs. Niko Semiconductor Co | Excelliance MOS vs. Advanced Power Electronics | Excelliance MOS vs. Anpec Electronics |
| Advanced Power vs. Pan Jit International | Advanced Power vs. Sitronix Technology Corp | Advanced Power vs. Nuvoton Technology Corp | Advanced Power vs. Kinsus Interconnect 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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