Correlation Between Egis Technology and WIN Semiconductors
Can any of the company-specific risk be diversified away by investing in both Egis Technology and WIN Semiconductors 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 Egis Technology and WIN Semiconductors into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Egis Technology and WIN Semiconductors, you can compare the effects of market volatilities on Egis Technology and WIN Semiconductors 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 Egis Technology with a short position of WIN Semiconductors. Check out your portfolio center. Please also check ongoing floating volatility patterns of Egis Technology and WIN Semiconductors.
Diversification Opportunities for Egis Technology and WIN Semiconductors
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Egis and WIN is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Egis Technology and WIN Semiconductors in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WIN Semiconductors and Egis Technology 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 Egis Technology are associated (or correlated) with WIN Semiconductors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WIN Semiconductors has no effect on the direction of Egis Technology i.e., Egis Technology and WIN Semiconductors go up and down completely randomly.
Pair Corralation between Egis Technology and WIN Semiconductors
Assuming the 90 days trading horizon Egis Technology is expected to under-perform the WIN Semiconductors. In addition to that, Egis Technology is 1.38 times more volatile than WIN Semiconductors. It trades about -0.01 of its total potential returns per unit of risk. WIN Semiconductors is currently generating about 0.36 per unit of volatility. If you would invest 10,000 in WIN Semiconductors on November 28, 2024 and sell it today you would earn a total of 1,450 from holding WIN Semiconductors or generate 14.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Egis Technology vs. WIN Semiconductors
Performance |
| Timeline |
| Egis Technology |
| WIN Semiconductors |
Egis Technology and WIN Semiconductors Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Egis Technology and WIN Semiconductors
The main advantage of trading using opposite Egis Technology and WIN Semiconductors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Egis Technology position performs unexpectedly, WIN Semiconductors 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 WIN Semiconductors will offset losses from the drop in WIN Semiconductors' long position.| Egis Technology vs. WIN Semiconductors | Egis Technology vs. Aspeed Technology | Egis Technology vs. LARGAN Precision Co | Egis Technology vs. Novatek Microelectronics Corp |
| WIN Semiconductors vs. LARGAN Precision Co | WIN Semiconductors vs. GlobalWafers Co | WIN Semiconductors vs. Novatek Microelectronics Corp | WIN Semiconductors vs. Advanced Wireless 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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