Correlation Between FineMat Applied and Winstek Semiconductor
Can any of the company-specific risk be diversified away by investing in both FineMat Applied and Winstek Semiconductor 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 FineMat Applied and Winstek Semiconductor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FineMat Applied Materials and Winstek Semiconductor Co, you can compare the effects of market volatilities on FineMat Applied and Winstek Semiconductor 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 FineMat Applied with a short position of Winstek Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of FineMat Applied and Winstek Semiconductor.
Diversification Opportunities for FineMat Applied and Winstek Semiconductor
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between FineMat and Winstek is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding FineMat Applied Materials and Winstek Semiconductor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Winstek Semiconductor and FineMat Applied 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 FineMat Applied Materials are associated (or correlated) with Winstek Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Winstek Semiconductor has no effect on the direction of FineMat Applied i.e., FineMat Applied and Winstek Semiconductor go up and down completely randomly.
Pair Corralation between FineMat Applied and Winstek Semiconductor
Assuming the 90 days trading horizon FineMat Applied Materials is expected to generate 0.76 times more return on investment than Winstek Semiconductor. However, FineMat Applied Materials is 1.32 times less risky than Winstek Semiconductor. It trades about -0.03 of its potential returns per unit of risk. Winstek Semiconductor Co is currently generating about -0.05 per unit of risk. If you would invest 3,620 in FineMat Applied Materials on October 24, 2024 and sell it today you would lose (75.00) from holding FineMat Applied Materials or give up 2.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FineMat Applied Materials vs. Winstek Semiconductor Co
Performance |
| Timeline |
| FineMat Applied Materials |
| Winstek Semiconductor |
FineMat Applied and Winstek Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FineMat Applied and Winstek Semiconductor
The main advantage of trading using opposite FineMat Applied and Winstek Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FineMat Applied position performs unexpectedly, Winstek Semiconductor 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 Winstek Semiconductor will offset losses from the drop in Winstek Semiconductor's long position.| FineMat Applied vs. Solomon Technology Corp | FineMat Applied vs. Chant Sincere Co | FineMat Applied vs. CviLux Corp | FineMat Applied vs. Shenmao Technology |
| Winstek Semiconductor vs. Elan Microelectronics Corp | Winstek Semiconductor vs. CKM Building Material | Winstek Semiconductor vs. Hwa Fong Rubber | Winstek Semiconductor vs. BenQ Materials 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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