Correlation Between Aiptek International and Winstek Semiconductor
Can any of the company-specific risk be diversified away by investing in both Aiptek International and Winstek Semiconductor 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 Aiptek International and Winstek Semiconductor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aiptek International and Winstek Semiconductor Co, you can compare the effects of market volatilities on Aiptek International and Winstek Semiconductor 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 Aiptek International with a short position of Winstek Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aiptek International and Winstek Semiconductor.
Diversification Opportunities for Aiptek International and Winstek Semiconductor
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aiptek and Winstek is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Aiptek International and Winstek Semiconductor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Winstek Semiconductor and Aiptek International 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 Aiptek International are associated (or correlated) with Winstek Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Winstek Semiconductor has no effect on the direction of Aiptek International i.e., Aiptek International and Winstek Semiconductor go up and down completely randomly.
Pair Corralation between Aiptek International and Winstek Semiconductor
Assuming the 90 days trading horizon Aiptek International is expected to under-perform the Winstek Semiconductor. In addition to that, Aiptek International is 1.19 times more volatile than Winstek Semiconductor Co. It trades about -0.01 of its total potential returns per unit of risk. Winstek Semiconductor Co is currently generating about 0.02 per unit of volatility. If you would invest 10,700 in Winstek Semiconductor Co on October 25, 2024 and sell it today you would earn a total of 350.00 from holding Winstek Semiconductor Co or generate 3.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aiptek International vs. Winstek Semiconductor Co
Performance |
| Timeline |
| Aiptek International |
| Winstek Semiconductor |
Aiptek International and Winstek Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aiptek International and Winstek Semiconductor
The main advantage of trading using opposite Aiptek International and Winstek Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aiptek International position performs unexpectedly, Winstek Semiconductor 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 Winstek Semiconductor will offset losses from the drop in Winstek Semiconductor's long position.| Aiptek International vs. Kinko Optical Co | Aiptek International vs. Altek Corp | Aiptek International vs. Harvatek Corp | Aiptek International vs. Asia Optical Co |
| Winstek Semiconductor vs. Elan Microelectronics Corp | Winstek Semiconductor vs. CKM Building Material | Winstek Semiconductor vs. Hwa Fong Rubber | Winstek Semiconductor vs. BenQ Materials 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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