Correlation Between Flytech Technology and WinMate Communication
Can any of the company-specific risk be diversified away by investing in both Flytech Technology and WinMate Communication 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 Flytech Technology and WinMate Communication into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Flytech Technology Co and WinMate Communication INC, you can compare the effects of market volatilities on Flytech Technology and WinMate Communication 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 Flytech Technology with a short position of WinMate Communication. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flytech Technology and WinMate Communication.
Diversification Opportunities for Flytech Technology and WinMate Communication
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Flytech and WinMate is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Flytech Technology Co and WinMate Communication INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WinMate Communication INC and Flytech 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 Flytech Technology Co are associated (or correlated) with WinMate Communication. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WinMate Communication INC has no effect on the direction of Flytech Technology i.e., Flytech Technology and WinMate Communication go up and down completely randomly.
Pair Corralation between Flytech Technology and WinMate Communication
Assuming the 90 days trading horizon Flytech Technology Co is expected to under-perform the WinMate Communication. In addition to that, Flytech Technology is 1.43 times more volatile than WinMate Communication INC. It trades about -0.09 of its total potential returns per unit of risk. WinMate Communication INC is currently generating about 0.35 per unit of volatility. If you would invest 13,800 in WinMate Communication INC on September 1, 2024 and sell it today you would earn a total of 1,350 from holding WinMate Communication INC or generate 9.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Flytech Technology Co vs. WinMate Communication INC
Performance |
| Timeline |
| Flytech Technology |
| WinMate Communication INC |
Flytech Technology and WinMate Communication Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flytech Technology and WinMate Communication
The main advantage of trading using opposite Flytech Technology and WinMate Communication positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flytech Technology position performs unexpectedly, WinMate Communication 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 WinMate Communication will offset losses from the drop in WinMate Communication's long position.| Flytech Technology vs. Advantech Co | Flytech Technology vs. Posiflex Technology | Flytech Technology vs. IEI Integration Corp | Flytech Technology vs. Topco Scientific Co |
| WinMate Communication vs. Hon Hai Precision | WinMate Communication vs. Delta Electronics | WinMate Communication vs. LARGAN Precision Co | WinMate Communication vs. Yageo 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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