Correlation Between AMPACS Corp and Leader Electronics
Can any of the company-specific risk be diversified away by investing in both AMPACS Corp and Leader Electronics 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 AMPACS Corp and Leader Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AMPACS Corp and Leader Electronics, you can compare the effects of market volatilities on AMPACS Corp and Leader Electronics 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 AMPACS Corp with a short position of Leader Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMPACS Corp and Leader Electronics.
Diversification Opportunities for AMPACS Corp and Leader Electronics
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between AMPACS and Leader is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding AMPACS Corp and Leader Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leader Electronics and AMPACS 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 AMPACS Corp are associated (or correlated) with Leader Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Leader Electronics has no effect on the direction of AMPACS Corp i.e., AMPACS Corp and Leader Electronics go up and down completely randomly.
Pair Corralation between AMPACS Corp and Leader Electronics
Assuming the 90 days trading horizon AMPACS Corp is expected to under-perform the Leader Electronics. In addition to that, AMPACS Corp is 1.64 times more volatile than Leader Electronics. It trades about -0.28 of its total potential returns per unit of risk. Leader Electronics is currently generating about -0.13 per unit of volatility. If you would invest 1,720 in Leader Electronics on September 13, 2024 and sell it today you would lose (85.00) from holding Leader Electronics or give up 4.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
AMPACS Corp vs. Leader Electronics
Performance |
| Timeline |
| AMPACS Corp |
| Leader Electronics |
AMPACS Corp and Leader Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMPACS Corp and Leader Electronics
The main advantage of trading using opposite AMPACS Corp and Leader Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMPACS Corp position performs unexpectedly, Leader Electronics 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 Leader Electronics will offset losses from the drop in Leader Electronics' long position.| AMPACS Corp vs. Auden Techno | AMPACS Corp vs. VIA Labs | AMPACS Corp vs. Orient Semiconductor Electronics | AMPACS Corp vs. AP Memory Technology |
| Leader Electronics vs. Yang Ming Marine | Leader Electronics vs. Wan Hai Lines | Leader Electronics vs. U Ming Marine Transport | Leader Electronics vs. Taiwan Navigation Co |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |