Correlation Between Dimerco Data and AVer Information
Can any of the company-specific risk be diversified away by investing in both Dimerco Data and AVer Information 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 Dimerco Data and AVer Information into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dimerco Data System and AVer Information, you can compare the effects of market volatilities on Dimerco Data and AVer Information 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 Dimerco Data with a short position of AVer Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dimerco Data and AVer Information.
Diversification Opportunities for Dimerco Data and AVer Information
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Dimerco and AVer is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Dimerco Data System and AVer Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AVer Information and Dimerco Data 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 Dimerco Data System are associated (or correlated) with AVer Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AVer Information has no effect on the direction of Dimerco Data i.e., Dimerco Data and AVer Information go up and down completely randomly.
Pair Corralation between Dimerco Data and AVer Information
Assuming the 90 days trading horizon Dimerco Data System is expected to generate 0.93 times more return on investment than AVer Information. However, Dimerco Data System is 1.07 times less risky than AVer Information. It trades about -0.23 of its potential returns per unit of risk. AVer Information is currently generating about -0.23 per unit of risk. If you would invest 11,450 in Dimerco Data System on September 3, 2024 and sell it today you would lose (650.00) from holding Dimerco Data System or give up 5.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dimerco Data System vs. AVer Information
Performance |
| Timeline |
| Dimerco Data System |
| AVer Information |
Dimerco Data and AVer Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dimerco Data and AVer Information
The main advantage of trading using opposite Dimerco Data and AVer Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dimerco Data position performs unexpectedly, AVer Information 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 AVer Information will offset losses from the drop in AVer Information's long position.| Dimerco Data vs. YuantaP shares Taiwan Top | Dimerco Data vs. Fubon MSCI Taiwan | Dimerco Data vs. YuantaP shares Taiwan Mid Cap | Dimerco Data vs. YuantaP shares Taiwan Electronics |
| AVer Information vs. Taiwan Semiconductor Manufacturing | AVer Information vs. Yang Ming Marine | AVer Information vs. ASE Industrial Holding | AVer Information vs. AU Optronics |
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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