Correlation Between Andes Technology and Landis Taipei
Can any of the company-specific risk be diversified away by investing in both Andes Technology and Landis Taipei 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 Andes Technology and Landis Taipei into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Andes Technology Corp and Landis Taipei Hotel, you can compare the effects of market volatilities on Andes Technology and Landis Taipei 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 Andes Technology with a short position of Landis Taipei. Check out your portfolio center. Please also check ongoing floating volatility patterns of Andes Technology and Landis Taipei.
Diversification Opportunities for Andes Technology and Landis Taipei
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Andes and Landis is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Andes Technology Corp and Landis Taipei Hotel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Landis Taipei Hotel and Andes 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 Andes Technology Corp are associated (or correlated) with Landis Taipei. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Landis Taipei Hotel has no effect on the direction of Andes Technology i.e., Andes Technology and Landis Taipei go up and down completely randomly.
Pair Corralation between Andes Technology and Landis Taipei
Assuming the 90 days trading horizon Andes Technology Corp is expected to under-perform the Landis Taipei. In addition to that, Andes Technology is 1.23 times more volatile than Landis Taipei Hotel. It trades about -0.14 of its total potential returns per unit of risk. Landis Taipei Hotel is currently generating about -0.01 per unit of volatility. If you would invest 1,870 in Landis Taipei Hotel on August 28, 2024 and sell it today you would lose (15.00) from holding Landis Taipei Hotel or give up 0.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Andes Technology Corp vs. Landis Taipei Hotel
Performance |
| Timeline |
| Andes Technology Corp |
| Landis Taipei Hotel |
Andes Technology and Landis Taipei Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Andes Technology and Landis Taipei
The main advantage of trading using opposite Andes Technology and Landis Taipei positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Andes Technology position performs unexpectedly, Landis Taipei 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 Landis Taipei will offset losses from the drop in Landis Taipei's long position.| Andes Technology vs. Sheng Yu Steel | Andes Technology vs. Chicony Power Technology | Andes Technology vs. Sunnic Technology Merchandise | Andes Technology vs. Posiflex Technology |
| Landis Taipei vs. Formosa International Hotels | Landis Taipei vs. Ambassador Hotel | Landis Taipei vs. FDC International Hotels | Landis Taipei vs. First Hotel 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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