Correlation Between AP Memory and Auden Techno
Can any of the company-specific risk be diversified away by investing in both AP Memory and Auden Techno 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 Auden Techno 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 Auden Techno, you can compare the effects of market volatilities on AP Memory and Auden Techno 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 Auden Techno. Check out your portfolio center. Please also check ongoing floating volatility patterns of AP Memory and Auden Techno.
Diversification Opportunities for AP Memory and Auden Techno
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 6531 and Auden is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding AP Memory Technology and Auden Techno in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Auden Techno 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 Auden Techno. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Auden Techno has no effect on the direction of AP Memory i.e., AP Memory and Auden Techno go up and down completely randomly.
Pair Corralation between AP Memory and Auden Techno
Assuming the 90 days trading horizon AP Memory Technology is expected to generate 1.3 times more return on investment than Auden Techno. However, AP Memory is 1.3 times more volatile than Auden Techno. It trades about 0.01 of its potential returns per unit of risk. Auden Techno is currently generating about -0.03 per unit of risk. If you would invest 29,500 in AP Memory Technology on December 4, 2024 and sell it today you would earn a total of 150.00 from holding AP Memory Technology or generate 0.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AP Memory Technology vs. Auden Techno
Performance |
| Timeline |
| AP Memory Technology |
| Auden Techno |
AP Memory and Auden Techno Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AP Memory and Auden Techno
The main advantage of trading using opposite AP Memory and Auden Techno positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AP Memory position performs unexpectedly, Auden Techno 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 Auden Techno will offset losses from the drop in Auden Techno's long position.| AP Memory vs. Global Unichip Corp | AP Memory vs. Alchip Technologies | AP Memory vs. FocalTech Systems Co | AP Memory vs. Asmedia Technology |
| Auden Techno vs. CyberTAN Technology | Auden Techno vs. Merry Electronics Co | Auden Techno vs. Unizyx Holding Corp | Auden Techno vs. Microelectronics 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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