Correlation Between AMPACS Corp and Coretronic
Can any of the company-specific risk be diversified away by investing in both AMPACS Corp and Coretronic 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 Coretronic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AMPACS Corp and Coretronic, you can compare the effects of market volatilities on AMPACS Corp and Coretronic 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 Coretronic. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMPACS Corp and Coretronic.
Diversification Opportunities for AMPACS Corp and Coretronic
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AMPACS and Coretronic is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding AMPACS Corp and Coretronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coretronic 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 Coretronic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coretronic has no effect on the direction of AMPACS Corp i.e., AMPACS Corp and Coretronic go up and down completely randomly.
Pair Corralation between AMPACS Corp and Coretronic
Assuming the 90 days trading horizon AMPACS Corp is expected to generate 1.21 times more return on investment than Coretronic. However, AMPACS Corp is 1.21 times more volatile than Coretronic. It trades about -0.04 of its potential returns per unit of risk. Coretronic is currently generating about -0.08 per unit of risk. If you would invest 5,910 in AMPACS Corp on September 1, 2024 and sell it today you would lose (1,210) from holding AMPACS Corp or give up 20.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AMPACS Corp vs. Coretronic
Performance |
| Timeline |
| AMPACS Corp |
| Coretronic |
AMPACS Corp and Coretronic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMPACS Corp and Coretronic
The main advantage of trading using opposite AMPACS Corp and Coretronic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMPACS Corp position performs unexpectedly, Coretronic 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 Coretronic will offset losses from the drop in Coretronic's long position.| AMPACS Corp vs. Ability Enterprise Co | AMPACS Corp vs. XAC Automation | AMPACS Corp vs. Cheng Fwa Industrial | AMPACS Corp vs. Kaulin Mfg |
| Coretronic vs. Qisda Corp | Coretronic vs. AU Optronics | Coretronic vs. Vanguard International Semiconductor | Coretronic vs. Lite On Technology 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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