Correlation Between ADLINK Technology and Antec
Can any of the company-specific risk be diversified away by investing in both ADLINK Technology and Antec 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 Antec into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ADLINK Technology and Antec Inc, you can compare the effects of market volatilities on ADLINK Technology and Antec 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 Antec. Check out your portfolio center. Please also check ongoing floating volatility patterns of ADLINK Technology and Antec.
Diversification Opportunities for ADLINK Technology and Antec
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between ADLINK and Antec is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding ADLINK Technology and Antec Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Antec Inc 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 Antec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Antec Inc has no effect on the direction of ADLINK Technology i.e., ADLINK Technology and Antec go up and down completely randomly.
Pair Corralation between ADLINK Technology and Antec
Assuming the 90 days trading horizon ADLINK Technology is expected to generate 1.45 times more return on investment than Antec. However, ADLINK Technology is 1.45 times more volatile than Antec Inc. It trades about 0.19 of its potential returns per unit of risk. Antec Inc is currently generating about -0.45 per unit of risk. If you would invest 6,960 in ADLINK Technology on August 29, 2024 and sell it today you would earn a total of 650.00 from holding ADLINK Technology or generate 9.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ADLINK Technology vs. Antec Inc
Performance |
| Timeline |
| ADLINK Technology |
| Antec Inc |
ADLINK Technology and Antec Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ADLINK Technology and Antec
The main advantage of trading using opposite ADLINK Technology and Antec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ADLINK Technology position performs unexpectedly, Antec 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 Antec will offset losses from the drop in Antec's long position.| ADLINK Technology vs. BenQ Materials Corp | ADLINK Technology vs. CKM Building Material | ADLINK Technology vs. Hannstar Display Corp | ADLINK Technology vs. RiTdisplay Corp |
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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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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