Correlation Between Vate Technology and An Shin
Can any of the company-specific risk be diversified away by investing in both Vate Technology and An Shin 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 Vate Technology and An Shin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vate Technology Co and An Shin Food Services, you can compare the effects of market volatilities on Vate Technology and An Shin 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 Vate Technology with a short position of An Shin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vate Technology and An Shin.
Diversification Opportunities for Vate Technology and An Shin
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Vate and 1259 is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Vate Technology Co and An Shin Food Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on An Shin Food and Vate 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 Vate Technology Co are associated (or correlated) with An Shin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of An Shin Food has no effect on the direction of Vate Technology i.e., Vate Technology and An Shin go up and down completely randomly.
Pair Corralation between Vate Technology and An Shin
Assuming the 90 days trading horizon Vate Technology Co is expected to generate 3.69 times more return on investment than An Shin. However, Vate Technology is 3.69 times more volatile than An Shin Food Services. It trades about 0.01 of its potential returns per unit of risk. An Shin Food Services is currently generating about -0.02 per unit of risk. If you would invest 1,905 in Vate Technology Co on September 5, 2024 and sell it today you would lose (140.00) from holding Vate Technology Co or give up 7.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vate Technology Co vs. An Shin Food Services
Performance |
| Timeline |
| Vate Technology |
| An Shin Food |
Vate Technology and An Shin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vate Technology and An Shin
The main advantage of trading using opposite Vate Technology and An Shin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vate Technology position performs unexpectedly, An Shin 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 An Shin will offset losses from the drop in An Shin's long position.| Vate Technology vs. An Shin Food Services | Vate Technology vs. X Legend Entertainment Co | Vate Technology vs. Orient Semiconductor Electronics | Vate Technology vs. Winstek Semiconductor Co |
| An Shin vs. Ruentex Development Co | An Shin vs. Symtek Automation Asia | An Shin vs. CTCI Corp | An Shin vs. Information Technology Total |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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