Correlation Between Wiwynn Corp and Excelliance MOS
Can any of the company-specific risk be diversified away by investing in both Wiwynn Corp and Excelliance MOS 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 Excelliance MOS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wiwynn Corp and Excelliance MOS, you can compare the effects of market volatilities on Wiwynn Corp and Excelliance MOS 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 Excelliance MOS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wiwynn Corp and Excelliance MOS.
Diversification Opportunities for Wiwynn Corp and Excelliance MOS
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Wiwynn and Excelliance is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Wiwynn Corp and Excelliance MOS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Excelliance MOS 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 Excelliance MOS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Excelliance MOS has no effect on the direction of Wiwynn Corp i.e., Wiwynn Corp and Excelliance MOS go up and down completely randomly.
Pair Corralation between Wiwynn Corp and Excelliance MOS
Assuming the 90 days trading horizon Wiwynn Corp is expected to generate 3.01 times more return on investment than Excelliance MOS. However, Wiwynn Corp is 3.01 times more volatile than Excelliance MOS. It trades about 0.04 of its potential returns per unit of risk. Excelliance MOS is currently generating about -0.28 per unit of risk. If you would invest 190,500 in Wiwynn Corp on September 1, 2024 and sell it today you would earn a total of 3,000 from holding Wiwynn Corp or generate 1.57% 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. Excelliance MOS
Performance |
| Timeline |
| Wiwynn Corp |
| Excelliance MOS |
Wiwynn Corp and Excelliance MOS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wiwynn Corp and Excelliance MOS
The main advantage of trading using opposite Wiwynn Corp and Excelliance MOS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wiwynn Corp position performs unexpectedly, Excelliance MOS 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 Excelliance MOS will offset losses from the drop in Excelliance MOS'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 |
| Excelliance MOS vs. Taiwan Semiconductor Manufacturing | Excelliance MOS vs. MediaTek | Excelliance MOS vs. United Microelectronics | Excelliance MOS vs. Novatek Microelectronics 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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