Correlation Between V Tac and Amtran Technology
Can any of the company-specific risk be diversified away by investing in both V Tac and Amtran Technology 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 V Tac and Amtran Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between V Tac Technology Co and Amtran Technology Co, you can compare the effects of market volatilities on V Tac and Amtran Technology 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 V Tac with a short position of Amtran Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of V Tac and Amtran Technology.
Diversification Opportunities for V Tac and Amtran Technology
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between 6229 and Amtran is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding V Tac Technology Co and Amtran Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amtran Technology and V Tac 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 V Tac Technology Co are associated (or correlated) with Amtran Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amtran Technology has no effect on the direction of V Tac i.e., V Tac and Amtran Technology go up and down completely randomly.
Pair Corralation between V Tac and Amtran Technology
Assuming the 90 days trading horizon V Tac Technology Co is expected to under-perform the Amtran Technology. In addition to that, V Tac is 1.18 times more volatile than Amtran Technology Co. It trades about -0.39 of its total potential returns per unit of risk. Amtran Technology Co is currently generating about -0.18 per unit of volatility. If you would invest 2,100 in Amtran Technology Co on August 31, 2024 and sell it today you would lose (155.00) from holding Amtran Technology Co or give up 7.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
V Tac Technology Co vs. Amtran Technology Co
Performance |
| Timeline |
| V Tac Technology |
| Amtran Technology |
V Tac and Amtran Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with V Tac and Amtran Technology
The main advantage of trading using opposite V Tac and Amtran Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if V Tac position performs unexpectedly, Amtran Technology 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 Amtran Technology will offset losses from the drop in Amtran Technology's long position.| V Tac vs. Gamania Digital Entertainment | V Tac vs. Eagle Cold Storage | V Tac vs. C Media Electronics | V Tac vs. Provision Information CoLtd |
| Amtran Technology vs. Bright Led Electronics | Amtran Technology vs. Grand Plastic Technology | Amtran Technology vs. BenQ Materials Corp | Amtran Technology vs. First Insurance Co |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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