Correlation Between Analog Integrations and Far EasTone
Can any of the company-specific risk be diversified away by investing in both Analog Integrations and Far EasTone 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 Analog Integrations and Far EasTone into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Analog Integrations and Far EasTone Telecommunications, you can compare the effects of market volatilities on Analog Integrations and Far EasTone 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 Analog Integrations with a short position of Far EasTone. Check out your portfolio center. Please also check ongoing floating volatility patterns of Analog Integrations and Far EasTone.
Diversification Opportunities for Analog Integrations and Far EasTone
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Analog and Far is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Analog Integrations and Far EasTone Telecommunications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Far EasTone Telecomm and Analog Integrations 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 Analog Integrations are associated (or correlated) with Far EasTone. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Far EasTone Telecomm has no effect on the direction of Analog Integrations i.e., Analog Integrations and Far EasTone go up and down completely randomly.
Pair Corralation between Analog Integrations and Far EasTone
Assuming the 90 days trading horizon Analog Integrations is expected to generate 1.16 times less return on investment than Far EasTone. In addition to that, Analog Integrations is 3.04 times more volatile than Far EasTone Telecommunications. It trades about 0.02 of its total potential returns per unit of risk. Far EasTone Telecommunications is currently generating about 0.07 per unit of volatility. If you would invest 6,590 in Far EasTone Telecommunications on September 12, 2024 and sell it today you would earn a total of 2,400 from holding Far EasTone Telecommunications or generate 36.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Analog Integrations vs. Far EasTone Telecommunications
Performance |
| Timeline |
| Analog Integrations |
| Far EasTone Telecomm |
Analog Integrations and Far EasTone Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Analog Integrations and Far EasTone
The main advantage of trading using opposite Analog Integrations and Far EasTone positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Analog Integrations position performs unexpectedly, Far EasTone 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 Far EasTone will offset losses from the drop in Far EasTone's long position.| Analog Integrations vs. Lelon Electronics Corp | Analog Integrations vs. WT Microelectronics Co | Analog Integrations vs. Higher Way Electronic | Analog Integrations vs. Formosa International Hotels |
| Far EasTone vs. Cheng Mei Materials | Far EasTone vs. Lemtech Holdings Co | Far EasTone vs. Chia Chang Co | Far EasTone vs. Ruentex Development 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |