Correlation Between Acbel Polytech and Waffer Technology
Can any of the company-specific risk be diversified away by investing in both Acbel Polytech and Waffer 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 Acbel Polytech and Waffer Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Acbel Polytech and Waffer Technology Corp, you can compare the effects of market volatilities on Acbel Polytech and Waffer 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 Acbel Polytech with a short position of Waffer Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acbel Polytech and Waffer Technology.
Diversification Opportunities for Acbel Polytech and Waffer Technology
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Acbel and Waffer is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Acbel Polytech and Waffer Technology Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Waffer Technology Corp and Acbel Polytech 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 Acbel Polytech are associated (or correlated) with Waffer Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Waffer Technology Corp has no effect on the direction of Acbel Polytech i.e., Acbel Polytech and Waffer Technology go up and down completely randomly.
Pair Corralation between Acbel Polytech and Waffer Technology
Assuming the 90 days trading horizon Acbel Polytech is expected to generate 2.6 times less return on investment than Waffer Technology. In addition to that, Acbel Polytech is 1.18 times more volatile than Waffer Technology Corp. It trades about 0.04 of its total potential returns per unit of risk. Waffer Technology Corp is currently generating about 0.12 per unit of volatility. If you would invest 6,650 in Waffer Technology Corp on September 4, 2024 and sell it today you would earn a total of 440.00 from holding Waffer Technology Corp or generate 6.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Acbel Polytech vs. Waffer Technology Corp
Performance |
| Timeline |
| Acbel Polytech |
| Waffer Technology Corp |
Acbel Polytech and Waffer Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Acbel Polytech and Waffer Technology
The main advantage of trading using opposite Acbel Polytech and Waffer Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acbel Polytech position performs unexpectedly, Waffer 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 Waffer Technology will offset losses from the drop in Waffer Technology's long position.| Acbel Polytech vs. Universal Microelectronics Co | Acbel Polytech vs. AVerMedia Technologies | Acbel Polytech vs. Symtek Automation Asia | Acbel Polytech vs. WiseChip Semiconductor |
| Waffer Technology vs. Catcher Technology Co | Waffer Technology vs. Acbel Polytech | Waffer Technology vs. Nan Ya Printed | Waffer Technology vs. Gemtek Technology 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |