Correlation Between Wiwynn Corp and Golden Biotechnology
Can any of the company-specific risk be diversified away by investing in both Wiwynn Corp and Golden Biotechnology 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 Golden Biotechnology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wiwynn Corp and Golden Biotechnology, you can compare the effects of market volatilities on Wiwynn Corp and Golden Biotechnology 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 Golden Biotechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wiwynn Corp and Golden Biotechnology.
Diversification Opportunities for Wiwynn Corp and Golden Biotechnology
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Wiwynn and Golden is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Wiwynn Corp and Golden Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golden Biotechnology 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 Golden Biotechnology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Golden Biotechnology has no effect on the direction of Wiwynn Corp i.e., Wiwynn Corp and Golden Biotechnology go up and down completely randomly.
Pair Corralation between Wiwynn Corp and Golden Biotechnology
Assuming the 90 days trading horizon Wiwynn Corp is expected to generate 2.08 times more return on investment than Golden Biotechnology. However, Wiwynn Corp is 2.08 times more volatile than Golden Biotechnology. It trades about 0.29 of its potential returns per unit of risk. Golden Biotechnology is currently generating about -0.31 per unit of risk. If you would invest 206,500 in Wiwynn Corp on September 19, 2024 and sell it today you would earn a total of 54,000 from holding Wiwynn Corp or generate 26.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wiwynn Corp vs. Golden Biotechnology
Performance |
| Timeline |
| Wiwynn Corp |
| Golden Biotechnology |
Wiwynn Corp and Golden Biotechnology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wiwynn Corp and Golden Biotechnology
The main advantage of trading using opposite Wiwynn Corp and Golden Biotechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wiwynn Corp position performs unexpectedly, Golden Biotechnology 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 Golden Biotechnology will offset losses from the drop in Golden Biotechnology's long position.| Wiwynn Corp vs. Qisda Corp | Wiwynn Corp vs. Quanta Computer | Wiwynn Corp vs. Wistron Corp | Wiwynn Corp vs. Delta Electronics |
| Golden Biotechnology vs. Hi Lai Foods Co | Golden Biotechnology vs. Tainet Communication System | Golden Biotechnology vs. First Hotel Co | Golden Biotechnology vs. Chief Telecom |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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