Correlation Between Chicony Power and AMPACS Corp
Can any of the company-specific risk be diversified away by investing in both Chicony Power and AMPACS Corp 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 Chicony Power and AMPACS Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chicony Power Technology and AMPACS Corp, you can compare the effects of market volatilities on Chicony Power and AMPACS Corp 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 Chicony Power with a short position of AMPACS Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chicony Power and AMPACS Corp.
Diversification Opportunities for Chicony Power and AMPACS Corp
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Chicony and AMPACS is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Chicony Power Technology and AMPACS Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMPACS Corp and Chicony Power 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 Chicony Power Technology are associated (or correlated) with AMPACS Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMPACS Corp has no effect on the direction of Chicony Power i.e., Chicony Power and AMPACS Corp go up and down completely randomly.
Pair Corralation between Chicony Power and AMPACS Corp
Assuming the 90 days trading horizon Chicony Power Technology is expected to generate 0.7 times more return on investment than AMPACS Corp. However, Chicony Power Technology is 1.42 times less risky than AMPACS Corp. It trades about -0.01 of its potential returns per unit of risk. AMPACS Corp is currently generating about -0.08 per unit of risk. If you would invest 13,450 in Chicony Power Technology on October 25, 2024 and sell it today you would lose (850.00) from holding Chicony Power Technology or give up 6.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chicony Power Technology vs. AMPACS Corp
Performance |
| Timeline |
| Chicony Power Technology |
| AMPACS Corp |
Chicony Power and AMPACS Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chicony Power and AMPACS Corp
The main advantage of trading using opposite Chicony Power and AMPACS Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chicony Power position performs unexpectedly, AMPACS Corp 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 AMPACS Corp will offset losses from the drop in AMPACS Corp's long position.| Chicony Power vs. Li Kang Biomedical | Chicony Power vs. Air Asia Co | Chicony Power vs. MediaTek | Chicony Power vs. International CSRC Investment |
| AMPACS Corp vs. Auden Techno | AMPACS Corp vs. VIA Labs | AMPACS Corp vs. Orient Semiconductor Electronics | AMPACS Corp vs. AP Memory Technology |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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