Correlation Between In Win and AU Optronics
Can any of the company-specific risk be diversified away by investing in both In Win and AU Optronics 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 In Win and AU Optronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between In Win Development and AU Optronics, you can compare the effects of market volatilities on In Win and AU Optronics 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 In Win with a short position of AU Optronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of In Win and AU Optronics.
Diversification Opportunities for In Win and AU Optronics
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 6117 and 2409 is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding In Win Development and AU Optronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AU Optronics and In Win 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 In Win Development are associated (or correlated) with AU Optronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AU Optronics has no effect on the direction of In Win i.e., In Win and AU Optronics go up and down completely randomly.
Pair Corralation between In Win and AU Optronics
Assuming the 90 days trading horizon In Win Development is expected to generate 2.46 times more return on investment than AU Optronics. However, In Win is 2.46 times more volatile than AU Optronics. It trades about 0.11 of its potential returns per unit of risk. AU Optronics is currently generating about -0.02 per unit of risk. If you would invest 2,315 in In Win Development on September 12, 2024 and sell it today you would earn a total of 7,355 from holding In Win Development or generate 317.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
In Win Development vs. AU Optronics
Performance |
| Timeline |
| In Win Development |
| AU Optronics |
In Win and AU Optronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with In Win and AU Optronics
The main advantage of trading using opposite In Win and AU Optronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if In Win position performs unexpectedly, AU Optronics 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 AU Optronics will offset losses from the drop in AU Optronics' long position.| In Win vs. AU Optronics | In Win vs. Innolux Corp | In Win vs. Ruentex Development Co | In Win vs. WiseChip Semiconductor |
| AU Optronics vs. Innolux Corp | AU Optronics vs. Ruentex Development Co | AU Optronics vs. WiseChip Semiconductor | AU Optronics vs. Novatek Microelectronics 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |