Correlation Between ADLINK Technology and An Shin
Can any of the company-specific risk be diversified away by investing in both ADLINK 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 ADLINK 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 ADLINK Technology and An Shin Food Services, you can compare the effects of market volatilities on ADLINK 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 ADLINK Technology with a short position of An Shin. Check out your portfolio center. Please also check ongoing floating volatility patterns of ADLINK Technology and An Shin.
Diversification Opportunities for ADLINK Technology and An Shin
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ADLINK and 1259 is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding ADLINK Technology 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 ADLINK 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 ADLINK Technology 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 ADLINK Technology i.e., ADLINK Technology and An Shin go up and down completely randomly.
Pair Corralation between ADLINK Technology and An Shin
Assuming the 90 days trading horizon ADLINK Technology is expected to generate 3.76 times more return on investment than An Shin. However, ADLINK Technology is 3.76 times more volatile than An Shin Food Services. It trades about 0.03 of its potential returns per unit of risk. An Shin Food Services is currently generating about -0.11 per unit of risk. If you would invest 7,480 in ADLINK Technology on October 30, 2024 and sell it today you would earn a total of 60.00 from holding ADLINK Technology or generate 0.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ADLINK Technology vs. An Shin Food Services
Performance |
| Timeline |
| ADLINK Technology |
| An Shin Food |
ADLINK Technology and An Shin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ADLINK Technology and An Shin
The main advantage of trading using opposite ADLINK Technology and An Shin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ADLINK 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.| ADLINK Technology vs. BenQ Materials Corp | ADLINK Technology vs. Realtek Semiconductor Corp | ADLINK Technology vs. WIN Semiconductors | ADLINK Technology vs. Simple Mart Retail |
| An Shin vs. Cayenne Entertainment Technology | An Shin vs. Eastern Media International | An Shin vs. TWOWAY Communications | An Shin vs. Chief Telecom |
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 Stocks Directory module to find actively traded stocks across global markets.
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