Correlation Between Coretronic and Quanta Storage
Can any of the company-specific risk be diversified away by investing in both Coretronic and Quanta Storage 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 Coretronic and Quanta Storage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coretronic and Quanta Storage, you can compare the effects of market volatilities on Coretronic and Quanta Storage 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 Coretronic with a short position of Quanta Storage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coretronic and Quanta Storage.
Diversification Opportunities for Coretronic and Quanta Storage
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Coretronic and Quanta is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Coretronic and Quanta Storage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quanta Storage and Coretronic 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 Coretronic are associated (or correlated) with Quanta Storage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quanta Storage has no effect on the direction of Coretronic i.e., Coretronic and Quanta Storage go up and down completely randomly.
Pair Corralation between Coretronic and Quanta Storage
Assuming the 90 days trading horizon Coretronic is expected to generate 1.39 times less return on investment than Quanta Storage. In addition to that, Coretronic is 1.45 times more volatile than Quanta Storage. It trades about 0.15 of its total potential returns per unit of risk. Quanta Storage is currently generating about 0.3 per unit of volatility. If you would invest 9,710 in Quanta Storage on November 28, 2024 and sell it today you would earn a total of 1,040 from holding Quanta Storage or generate 10.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Coretronic vs. Quanta Storage
Performance |
| Timeline |
| Coretronic |
| Quanta Storage |
Coretronic and Quanta Storage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coretronic and Quanta Storage
The main advantage of trading using opposite Coretronic and Quanta Storage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coretronic position performs unexpectedly, Quanta Storage 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 Quanta Storage will offset losses from the drop in Quanta Storage's long position.| Coretronic vs. Qisda Corp | Coretronic vs. AU Optronics | Coretronic vs. Vanguard International Semiconductor | Coretronic vs. Lite On Technology Corp |
| Quanta Storage vs. Qisda Corp | Quanta Storage vs. Quanta Computer | Quanta Storage vs. Coretronic | Quanta Storage vs. Wistron Corp |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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