Correlation Between AMPACS Corp and Chicony Power
Can any of the company-specific risk be diversified away by investing in both AMPACS Corp and Chicony Power 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 Chicony Power into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AMPACS Corp and Chicony Power Technology, you can compare the effects of market volatilities on AMPACS Corp and Chicony Power 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 Chicony Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMPACS Corp and Chicony Power.
Diversification Opportunities for AMPACS Corp and Chicony Power
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between AMPACS and Chicony is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding AMPACS Corp and Chicony Power Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chicony Power Technology 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 Chicony Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chicony Power Technology has no effect on the direction of AMPACS Corp i.e., AMPACS Corp and Chicony Power go up and down completely randomly.
Pair Corralation between AMPACS Corp and Chicony Power
Assuming the 90 days trading horizon AMPACS Corp is expected to under-perform the Chicony Power. In addition to that, AMPACS Corp is 1.42 times more volatile than Chicony Power Technology. It trades about -0.08 of its total potential returns per unit of risk. Chicony Power Technology is currently generating about -0.01 per unit of volatility. If you would invest 13,450 in Chicony Power Technology on October 25, 2024 and sell it today you would lose (850.00) from holding Chicony Power Technology or give up 6.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AMPACS Corp vs. Chicony Power Technology
Performance |
| Timeline |
| AMPACS Corp |
| Chicony Power Technology |
AMPACS Corp and Chicony Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMPACS Corp and Chicony Power
The main advantage of trading using opposite AMPACS Corp and Chicony Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMPACS Corp position performs unexpectedly, Chicony Power 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 Chicony Power will offset losses from the drop in Chicony Power's long position.| AMPACS Corp vs. Auden Techno | AMPACS Corp vs. VIA Labs | AMPACS Corp vs. Orient Semiconductor Electronics | AMPACS Corp vs. AP Memory Technology |
| Chicony Power vs. Li Kang Biomedical | Chicony Power vs. Air Asia Co | Chicony Power vs. MediaTek | Chicony Power vs. International CSRC Investment |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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