Correlation Between Wiwynn Corp and AAEON Technology
Can any of the company-specific risk be diversified away by investing in both Wiwynn Corp and AAEON 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 AAEON 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 AAEON Technology, you can compare the effects of market volatilities on Wiwynn Corp and AAEON 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 AAEON Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wiwynn Corp and AAEON Technology.
Diversification Opportunities for Wiwynn Corp and AAEON Technology
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Wiwynn and AAEON is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Wiwynn Corp and AAEON Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AAEON 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 AAEON Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AAEON Technology has no effect on the direction of Wiwynn Corp i.e., Wiwynn Corp and AAEON Technology go up and down completely randomly.
Pair Corralation between Wiwynn Corp and AAEON Technology
Assuming the 90 days trading horizon Wiwynn Corp is expected to generate 0.73 times more return on investment than AAEON Technology. However, Wiwynn Corp is 1.38 times less risky than AAEON Technology. It trades about 0.06 of its potential returns per unit of risk. AAEON Technology is currently generating about 0.04 per unit of risk. If you would invest 112,500 in Wiwynn Corp on August 24, 2024 and sell it today you would earn a total of 100,500 from holding Wiwynn Corp or generate 89.33% 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. AAEON Technology
Performance |
| Timeline |
| Wiwynn Corp |
| AAEON Technology |
Wiwynn Corp and AAEON Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wiwynn Corp and AAEON Technology
The main advantage of trading using opposite Wiwynn Corp and AAEON Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wiwynn Corp position performs unexpectedly, AAEON 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 AAEON Technology will offset losses from the drop in AAEON 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 |
| AAEON Technology vs. Quanta Computer | AAEON Technology vs. Wiwynn Corp | AAEON Technology vs. Getac Technology Corp | AAEON Technology vs. InnoDisk |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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