Correlation Between Wiwynn Corp and Group Up
Can any of the company-specific risk be diversified away by investing in both Wiwynn Corp and Group Up 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 Group Up into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wiwynn Corp and Group Up Industrial, you can compare the effects of market volatilities on Wiwynn Corp and Group Up 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 Group Up. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wiwynn Corp and Group Up.
Diversification Opportunities for Wiwynn Corp and Group Up
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Wiwynn and Group is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Wiwynn Corp and Group Up Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Group Up Industrial 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 Group Up. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Group Up Industrial has no effect on the direction of Wiwynn Corp i.e., Wiwynn Corp and Group Up go up and down completely randomly.
Pair Corralation between Wiwynn Corp and Group Up
Assuming the 90 days trading horizon Wiwynn Corp is expected to under-perform the Group Up. In addition to that, Wiwynn Corp is 1.0 times more volatile than Group Up Industrial. It trades about -0.04 of its total potential returns per unit of risk. Group Up Industrial is currently generating about 0.03 per unit of volatility. If you would invest 24,405 in Group Up Industrial on September 1, 2024 and sell it today you would earn a total of 1,545 from holding Group Up Industrial or generate 6.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.22% |
| Values | Daily Returns |
Wiwynn Corp vs. Group Up Industrial
Performance |
| Timeline |
| Wiwynn Corp |
| Group Up Industrial |
Wiwynn Corp and Group Up Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wiwynn Corp and Group Up
The main advantage of trading using opposite Wiwynn Corp and Group Up positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wiwynn Corp position performs unexpectedly, Group Up 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 Group Up will offset losses from the drop in Group Up'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 |
| Group Up vs. Wei Chih Steel | Group Up vs. Ligitek Electronics Co | Group Up vs. Ablerex Electronics Co | Group Up vs. TMP Steel |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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