Correlation Between AP Memory and WIN Semiconductors
Can any of the company-specific risk be diversified away by investing in both AP Memory 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 AP Memory and WIN Semiconductors into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AP Memory Technology and WIN Semiconductors, you can compare the effects of market volatilities on AP Memory 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 AP Memory with a short position of WIN Semiconductors. Check out your portfolio center. Please also check ongoing floating volatility patterns of AP Memory and WIN Semiconductors.
Diversification Opportunities for AP Memory and WIN Semiconductors
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 6531 and WIN is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding AP Memory Technology and WIN Semiconductors in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WIN Semiconductors and AP Memory 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 AP Memory 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 AP Memory i.e., AP Memory and WIN Semiconductors go up and down completely randomly.
Pair Corralation between AP Memory and WIN Semiconductors
Assuming the 90 days trading horizon AP Memory Technology is expected to generate 1.08 times more return on investment than WIN Semiconductors. However, AP Memory is 1.08 times more volatile than WIN Semiconductors. It trades about 0.03 of its potential returns per unit of risk. WIN Semiconductors is currently generating about -0.16 per unit of risk. If you would invest 31,100 in AP Memory Technology on September 13, 2024 and sell it today you would earn a total of 600.00 from holding AP Memory Technology or generate 1.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AP Memory Technology vs. WIN Semiconductors
Performance |
| Timeline |
| AP Memory Technology |
| WIN Semiconductors |
AP Memory and WIN Semiconductors Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AP Memory and WIN Semiconductors
The main advantage of trading using opposite AP Memory and WIN Semiconductors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AP Memory 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.| AP Memory vs. WIN Semiconductors | AP Memory vs. GlobalWafers Co | AP Memory vs. Novatek Microelectronics Corp | AP Memory vs. Ruentex Development Co |
| 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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