Correlation Between Wiwynn Corp and Alcor Micro
Can any of the company-specific risk be diversified away by investing in both Wiwynn Corp and Alcor Micro 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 Alcor Micro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wiwynn Corp and Alcor Micro, you can compare the effects of market volatilities on Wiwynn Corp and Alcor Micro 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 Alcor Micro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wiwynn Corp and Alcor Micro.
Diversification Opportunities for Wiwynn Corp and Alcor Micro
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Wiwynn and Alcor is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Wiwynn Corp and Alcor Micro in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alcor Micro 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 Alcor Micro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alcor Micro has no effect on the direction of Wiwynn Corp i.e., Wiwynn Corp and Alcor Micro go up and down completely randomly.
Pair Corralation between Wiwynn Corp and Alcor Micro
Assuming the 90 days trading horizon Wiwynn Corp is expected to generate 1.23 times more return on investment than Alcor Micro. However, Wiwynn Corp is 1.23 times more volatile than Alcor Micro. It trades about 0.15 of its potential returns per unit of risk. Alcor Micro is currently generating about -0.25 per unit of risk. If you would invest 197,000 in Wiwynn Corp on August 27, 2024 and sell it today you would earn a total of 16,000 from holding Wiwynn Corp or generate 8.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wiwynn Corp vs. Alcor Micro
Performance |
| Timeline |
| Wiwynn Corp |
| Alcor Micro |
Wiwynn Corp and Alcor Micro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wiwynn Corp and Alcor Micro
The main advantage of trading using opposite Wiwynn Corp and Alcor Micro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wiwynn Corp position performs unexpectedly, Alcor Micro 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 Alcor Micro will offset losses from the drop in Alcor Micro'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 |
| Alcor Micro vs. Quanta Computer | Alcor Micro vs. Wiwynn Corp | Alcor Micro vs. Getac Technology Corp | Alcor Micro vs. IEI Integration 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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