Correlation Between Deltamac Taiwan and Ampoc Far
Can any of the company-specific risk be diversified away by investing in both Deltamac Taiwan and Ampoc Far 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 Deltamac Taiwan and Ampoc Far into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Deltamac Taiwan Co and Ampoc Far East Co, you can compare the effects of market volatilities on Deltamac Taiwan and Ampoc Far 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 Deltamac Taiwan with a short position of Ampoc Far. Check out your portfolio center. Please also check ongoing floating volatility patterns of Deltamac Taiwan and Ampoc Far.
Diversification Opportunities for Deltamac Taiwan and Ampoc Far
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Deltamac and Ampoc is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Deltamac Taiwan Co and Ampoc Far East Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ampoc Far East and Deltamac Taiwan 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 Deltamac Taiwan Co are associated (or correlated) with Ampoc Far. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ampoc Far East has no effect on the direction of Deltamac Taiwan i.e., Deltamac Taiwan and Ampoc Far go up and down completely randomly.
Pair Corralation between Deltamac Taiwan and Ampoc Far
Assuming the 90 days trading horizon Deltamac Taiwan Co is expected to generate 3.61 times more return on investment than Ampoc Far. However, Deltamac Taiwan is 3.61 times more volatile than Ampoc Far East Co. It trades about 0.01 of its potential returns per unit of risk. Ampoc Far East Co is currently generating about 0.01 per unit of risk. If you would invest 3,235 in Deltamac Taiwan Co on October 26, 2024 and sell it today you would lose (75.00) from holding Deltamac Taiwan Co or give up 2.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Deltamac Taiwan Co vs. Ampoc Far East Co
Performance |
| Timeline |
| Deltamac Taiwan |
| Ampoc Far East |
Deltamac Taiwan and Ampoc Far Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Deltamac Taiwan and Ampoc Far
The main advantage of trading using opposite Deltamac Taiwan and Ampoc Far positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Deltamac Taiwan position performs unexpectedly, Ampoc Far 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 Ampoc Far will offset losses from the drop in Ampoc Far's long position.| Deltamac Taiwan vs. SS Healthcare Holding | Deltamac Taiwan vs. Hannstar Display Corp | Deltamac Taiwan vs. Mechema Chemicals Int | Deltamac Taiwan vs. Shiny Chemical Industrial |
| Ampoc Far vs. Greatek Electronics | Ampoc Far vs. Stark Technology | Ampoc Far vs. Elan Microelectronics Corp | Ampoc Far vs. Wellell |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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