Correlation Between Fun Yours and Adata Technology
Can any of the company-specific risk be diversified away by investing in both Fun Yours and Adata 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 Fun Yours and Adata Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fun Yours Technology and Adata Technology Co, you can compare the effects of market volatilities on Fun Yours and Adata 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 Fun Yours with a short position of Adata Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fun Yours and Adata Technology.
Diversification Opportunities for Fun Yours and Adata Technology
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Fun and Adata is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Fun Yours Technology and Adata Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Adata Technology and Fun Yours 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 Fun Yours Technology are associated (or correlated) with Adata Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Adata Technology has no effect on the direction of Fun Yours i.e., Fun Yours and Adata Technology go up and down completely randomly.
Pair Corralation between Fun Yours and Adata Technology
Assuming the 90 days trading horizon Fun Yours Technology is expected to generate 19.99 times more return on investment than Adata Technology. However, Fun Yours is 19.99 times more volatile than Adata Technology Co. It trades about 0.05 of its potential returns per unit of risk. Adata Technology Co is currently generating about 0.05 per unit of risk. If you would invest 3,329 in Fun Yours Technology on September 3, 2024 and sell it today you would earn a total of 1,681 from holding Fun Yours Technology or generate 50.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fun Yours Technology vs. Adata Technology Co
Performance |
| Timeline |
| Fun Yours Technology |
| Adata Technology |
Fun Yours and Adata Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fun Yours and Adata Technology
The main advantage of trading using opposite Fun Yours and Adata Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fun Yours position performs unexpectedly, Adata 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 Adata Technology will offset losses from the drop in Adata Technology's long position.| Fun Yours vs. Adata Technology Co | Fun Yours vs. Fubon Financial Holding | Fun Yours vs. Wistron Information Technology | Fun Yours vs. Easywell Biomedicals |
| Adata Technology vs. Sitronix Technology Corp | Adata Technology vs. Kinsus Interconnect Technology | Adata Technology vs. WiseChip Semiconductor | Adata Technology vs. Novatek Microelectronics Corp |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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