Correlation Between Lanner Electronics and Ampire
Can any of the company-specific risk be diversified away by investing in both Lanner Electronics and Ampire 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 Lanner Electronics and Ampire into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lanner Electronics and Ampire Co, you can compare the effects of market volatilities on Lanner Electronics and Ampire 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 Lanner Electronics with a short position of Ampire. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lanner Electronics and Ampire.
Diversification Opportunities for Lanner Electronics and Ampire
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Lanner and Ampire is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Lanner Electronics and Ampire Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ampire and Lanner Electronics 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 Lanner Electronics are associated (or correlated) with Ampire. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ampire has no effect on the direction of Lanner Electronics i.e., Lanner Electronics and Ampire go up and down completely randomly.
Pair Corralation between Lanner Electronics and Ampire
Assuming the 90 days trading horizon Lanner Electronics is expected to generate 2.35 times more return on investment than Ampire. However, Lanner Electronics is 2.35 times more volatile than Ampire Co. It trades about 0.03 of its potential returns per unit of risk. Ampire Co is currently generating about -0.2 per unit of risk. If you would invest 9,170 in Lanner Electronics on September 12, 2024 and sell it today you would earn a total of 80.00 from holding Lanner Electronics or generate 0.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lanner Electronics vs. Ampire Co
Performance |
| Timeline |
| Lanner Electronics |
| Ampire |
Lanner Electronics and Ampire Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lanner Electronics and Ampire
The main advantage of trading using opposite Lanner Electronics and Ampire positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lanner Electronics position performs unexpectedly, Ampire 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 Ampire will offset losses from the drop in Ampire's long position.| Lanner Electronics vs. Advantech Co | Lanner Electronics vs. IBASE Technology | Lanner Electronics vs. Phison Electronics | Lanner Electronics vs. Axiomtek Co |
| Ampire vs. Asia Tech Image | Ampire vs. Emerging Display Technologies | Ampire vs. DRWu Skincare Co | Ampire vs. Lanner Electronics |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |