Correlation Between Wiwynn Corp and Sino American
Can any of the company-specific risk be diversified away by investing in both Wiwynn Corp and Sino American 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 Sino American into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wiwynn Corp and Sino American Silicon Products, you can compare the effects of market volatilities on Wiwynn Corp and Sino American 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 Sino American. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wiwynn Corp and Sino American.
Diversification Opportunities for Wiwynn Corp and Sino American
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Wiwynn and Sino is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Wiwynn Corp and Sino American Silicon Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sino American Silicon 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 Sino American. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sino American Silicon has no effect on the direction of Wiwynn Corp i.e., Wiwynn Corp and Sino American go up and down completely randomly.
Pair Corralation between Wiwynn Corp and Sino American
Assuming the 90 days trading horizon Wiwynn Corp is expected to generate 1.2 times more return on investment than Sino American. However, Wiwynn Corp is 1.2 times more volatile than Sino American Silicon Products. It trades about -0.19 of its potential returns per unit of risk. Sino American Silicon Products is currently generating about -0.32 per unit of risk. If you would invest 253,500 in Wiwynn Corp on October 25, 2024 and sell it today you would lose (29,500) from holding Wiwynn Corp or give up 11.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Wiwynn Corp vs. Sino American Silicon Products
Performance |
| Timeline |
| Wiwynn Corp |
| Sino American Silicon |
Wiwynn Corp and Sino American Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wiwynn Corp and Sino American
The main advantage of trading using opposite Wiwynn Corp and Sino American positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wiwynn Corp position performs unexpectedly, Sino American 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 Sino American will offset losses from the drop in Sino American'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 |
| Sino American vs. GlobalWafers Co | Sino American vs. Wafer Works | Sino American vs. Motech Industries Co | Sino American vs. WIN Semiconductors |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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