Correlation Between GlobalWafers and Laster Tech
Can any of the company-specific risk be diversified away by investing in both GlobalWafers and Laster Tech 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 GlobalWafers and Laster Tech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GlobalWafers Co and Laster Tech Corp, you can compare the effects of market volatilities on GlobalWafers and Laster Tech 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 GlobalWafers with a short position of Laster Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of GlobalWafers and Laster Tech.
Diversification Opportunities for GlobalWafers and Laster Tech
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GlobalWafers and Laster is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding GlobalWafers Co and Laster Tech Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Laster Tech Corp and GlobalWafers 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 GlobalWafers Co are associated (or correlated) with Laster Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Laster Tech Corp has no effect on the direction of GlobalWafers i.e., GlobalWafers and Laster Tech go up and down completely randomly.
Pair Corralation between GlobalWafers and Laster Tech
Assuming the 90 days trading horizon GlobalWafers Co is expected to generate 0.89 times more return on investment than Laster Tech. However, GlobalWafers Co is 1.12 times less risky than Laster Tech. It trades about 0.0 of its potential returns per unit of risk. Laster Tech Corp is currently generating about -0.02 per unit of risk. If you would invest 43,242 in GlobalWafers Co on September 12, 2024 and sell it today you would lose (1,942) from holding GlobalWafers Co or give up 4.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GlobalWafers Co vs. Laster Tech Corp
Performance |
| Timeline |
| GlobalWafers |
| Laster Tech Corp |
GlobalWafers and Laster Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GlobalWafers and Laster Tech
The main advantage of trading using opposite GlobalWafers and Laster Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GlobalWafers position performs unexpectedly, Laster Tech 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 Laster Tech will offset losses from the drop in Laster Tech's long position.| GlobalWafers vs. AU Optronics | GlobalWafers vs. Innolux Corp | GlobalWafers vs. Ruentex Development Co | GlobalWafers vs. WiseChip Semiconductor |
| Laster Tech vs. WIN Semiconductors | Laster Tech vs. GlobalWafers Co | Laster Tech vs. Novatek Microelectronics Corp | Laster Tech 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |