Correlation Between Antec and Tai Tung
Can any of the company-specific risk be diversified away by investing in both Antec and Tai Tung 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 Tai Tung into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Antec Inc and Tai Tung Communication, you can compare the effects of market volatilities on Antec and Tai Tung 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 Tai Tung. Check out your portfolio center. Please also check ongoing floating volatility patterns of Antec and Tai Tung.
Diversification Opportunities for Antec and Tai Tung
Average diversification
The 3 months correlation between Antec and Tai is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Antec Inc and Tai Tung Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tai Tung Communication 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 Tai Tung. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tai Tung Communication has no effect on the direction of Antec i.e., Antec and Tai Tung go up and down completely randomly.
Pair Corralation between Antec and Tai Tung
Assuming the 90 days trading horizon Antec Inc is expected to generate 1.56 times more return on investment than Tai Tung. However, Antec is 1.56 times more volatile than Tai Tung Communication. It trades about 0.05 of its potential returns per unit of risk. Tai Tung Communication is currently generating about 0.06 per unit of risk. If you would invest 1,637 in Antec Inc on September 14, 2024 and sell it today you would earn a total of 1,733 from holding Antec Inc or generate 105.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Antec Inc vs. Tai Tung Communication
Performance |
| Timeline |
| Antec Inc |
| Tai Tung Communication |
Antec and Tai Tung Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Antec and Tai Tung
The main advantage of trading using opposite Antec and Tai Tung positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Antec position performs unexpectedly, Tai Tung 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 Tai Tung will offset losses from the drop in Tai Tung's long position.| Antec vs. Tai Tung Communication | Antec vs. Wonderful Hi Tech Co | Antec vs. BenQ Medical Technology | Antec vs. Asustek Computer |
| Tai Tung vs. AU Optronics | Tai Tung vs. Innolux Corp | Tai Tung vs. Ruentex Development Co | Tai Tung vs. WiseChip Semiconductor |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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