Correlation Between Wiwynn Corp and Xintec
Can any of the company-specific risk be diversified away by investing in both Wiwynn Corp and Xintec 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 Wiwynn Corp and Xintec into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wiwynn Corp and Xintec, you can compare the effects of market volatilities on Wiwynn Corp and Xintec 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 Wiwynn Corp with a short position of Xintec. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wiwynn Corp and Xintec.
Diversification Opportunities for Wiwynn Corp and Xintec
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Wiwynn and Xintec is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Wiwynn Corp and Xintec in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xintec and Wiwynn Corp 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 Wiwynn Corp are associated (or correlated) with Xintec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xintec has no effect on the direction of Wiwynn Corp i.e., Wiwynn Corp and Xintec go up and down completely randomly.
Pair Corralation between Wiwynn Corp and Xintec
Assuming the 90 days trading horizon Wiwynn Corp is expected to generate 18.63 times less return on investment than Xintec. But when comparing it to its historical volatility, Wiwynn Corp is 1.06 times less risky than Xintec. It trades about 0.0 of its potential returns per unit of risk. Xintec is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 17,206 in Xintec on September 13, 2024 and sell it today you would earn a total of 3,044 from holding Xintec or generate 17.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
Wiwynn Corp vs. Xintec
Performance |
| Timeline |
| Wiwynn Corp |
| Xintec |
Wiwynn Corp and Xintec Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wiwynn Corp and Xintec
The main advantage of trading using opposite Wiwynn Corp and Xintec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wiwynn Corp position performs unexpectedly, Xintec 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 Xintec will offset losses from the drop in Xintec's long position.| Wiwynn Corp vs. Aspeed Technology | Wiwynn Corp vs. Unimicron Technology Corp | Wiwynn Corp vs. Asmedia Technology | Wiwynn Corp vs. Novatek Microelectronics Corp |
| Xintec vs. AU Optronics | Xintec vs. Innolux Corp | Xintec vs. Ruentex Development Co | Xintec vs. WiseChip 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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