Correlation Between Wiwynn Corp and Castles Technology
Can any of the company-specific risk be diversified away by investing in both Wiwynn Corp and Castles Technology 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 Castles Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wiwynn Corp and Castles Technology Co, you can compare the effects of market volatilities on Wiwynn Corp and Castles Technology 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 Castles Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wiwynn Corp and Castles Technology.
Diversification Opportunities for Wiwynn Corp and Castles Technology
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Wiwynn and Castles is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Wiwynn Corp and Castles Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Castles Technology 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 Castles Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Castles Technology has no effect on the direction of Wiwynn Corp i.e., Wiwynn Corp and Castles Technology go up and down completely randomly.
Pair Corralation between Wiwynn Corp and Castles Technology
Assuming the 90 days trading horizon Wiwynn Corp is expected to generate 1.23 times more return on investment than Castles Technology. However, Wiwynn Corp is 1.23 times more volatile than Castles Technology Co. It trades about 0.09 of its potential returns per unit of risk. Castles Technology Co is currently generating about 0.03 per unit of risk. If you would invest 77,200 in Wiwynn Corp on October 13, 2024 and sell it today you would earn a total of 176,300 from holding Wiwynn Corp or generate 228.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Wiwynn Corp vs. Castles Technology Co
Performance |
| Timeline |
| Wiwynn Corp |
| Castles Technology |
Wiwynn Corp and Castles Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wiwynn Corp and Castles Technology
The main advantage of trading using opposite Wiwynn Corp and Castles Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wiwynn Corp position performs unexpectedly, Castles Technology 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 Castles Technology will offset losses from the drop in Castles Technology'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 |
| Castles Technology vs. AVerMedia Technologies | Castles Technology vs. Min Aik Technology | Castles Technology vs. Jean Co | Castles Technology vs. Uniform Industrial Corp |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |