Correlation Between Aker Technology and Shieh Yih
Can any of the company-specific risk be diversified away by investing in both Aker Technology and Shieh Yih 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 Aker Technology and Shieh Yih into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aker Technology Co and Shieh Yih Machinery, you can compare the effects of market volatilities on Aker Technology and Shieh Yih 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 Aker Technology with a short position of Shieh Yih. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aker Technology and Shieh Yih.
Diversification Opportunities for Aker Technology and Shieh Yih
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Aker and Shieh is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Aker Technology Co and Shieh Yih Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shieh Yih Machinery and Aker 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 Aker Technology Co are associated (or correlated) with Shieh Yih. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shieh Yih Machinery has no effect on the direction of Aker Technology i.e., Aker Technology and Shieh Yih go up and down completely randomly.
Pair Corralation between Aker Technology and Shieh Yih
Assuming the 90 days trading horizon Aker Technology Co is expected to generate 0.95 times more return on investment than Shieh Yih. However, Aker Technology Co is 1.05 times less risky than Shieh Yih. It trades about -0.29 of its potential returns per unit of risk. Shieh Yih Machinery is currently generating about -0.36 per unit of risk. If you would invest 2,485 in Aker Technology Co on October 24, 2024 and sell it today you would lose (330.00) from holding Aker Technology Co or give up 13.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aker Technology Co vs. Shieh Yih Machinery
Performance |
| Timeline |
| Aker Technology |
| Shieh Yih Machinery |
Aker Technology and Shieh Yih Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aker Technology and Shieh Yih
The main advantage of trading using opposite Aker Technology and Shieh Yih positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aker Technology position performs unexpectedly, Shieh Yih 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 Shieh Yih will offset losses from the drop in Shieh Yih's long position.| Aker Technology vs. AVer Information | Aker Technology vs. Syntek Semiconductor Co | Aker Technology vs. Gigastorage Corp | Aker Technology vs. WiseChip Semiconductor |
| Shieh Yih vs. RDC Semiconductor Co | Shieh Yih vs. Sinopower Semiconductor | Shieh Yih vs. Orient Semiconductor Electronics | Shieh Yih vs. Weltrend Semiconductor |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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