Correlation Between Antec and Advantech
Can any of the company-specific risk be diversified away by investing in both Antec and Advantech 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 Antec and Advantech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Antec Inc and Advantech Co, you can compare the effects of market volatilities on Antec and Advantech 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 Antec with a short position of Advantech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Antec and Advantech.
Diversification Opportunities for Antec and Advantech
Weak diversification
The 3 months correlation between Antec and Advantech is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Antec Inc and Advantech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advantech and Antec 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 Antec Inc are associated (or correlated) with Advantech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advantech has no effect on the direction of Antec i.e., Antec and Advantech go up and down completely randomly.
Pair Corralation between Antec and Advantech
Assuming the 90 days trading horizon Antec Inc is expected to under-perform the Advantech. In addition to that, Antec is 1.49 times more volatile than Advantech Co. It trades about -0.12 of its total potential returns per unit of risk. Advantech Co is currently generating about 0.08 per unit of volatility. If you would invest 33,200 in Advantech Co on August 25, 2024 and sell it today you would earn a total of 1,700 from holding Advantech Co or generate 5.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Antec Inc vs. Advantech Co
Performance |
| Timeline |
| Antec Inc |
| Advantech |
Antec and Advantech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Antec and Advantech
The main advantage of trading using opposite Antec and Advantech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Antec position performs unexpectedly, Advantech 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 Advantech will offset losses from the drop in Advantech's long position.| Antec vs. Advantech Co | Antec vs. IEI Integration Corp | Antec vs. Flytech Technology Co | Antec vs. ADLINK Technology |
| Advantech vs. Novatek Microelectronics Corp | Advantech vs. Quanta Computer | Advantech vs. United Microelectronics |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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