Correlation Between Advanced Wireless and King Yuan
Can any of the company-specific risk be diversified away by investing in both Advanced Wireless and King Yuan 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 Advanced Wireless and King Yuan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Advanced Wireless Semiconductor and King Yuan Electronics, you can compare the effects of market volatilities on Advanced Wireless and King Yuan 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 Advanced Wireless with a short position of King Yuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advanced Wireless and King Yuan.
Diversification Opportunities for Advanced Wireless and King Yuan
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Advanced and King is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Advanced Wireless Semiconducto and King Yuan Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on King Yuan Electronics and Advanced Wireless 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 Advanced Wireless Semiconductor are associated (or correlated) with King Yuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of King Yuan Electronics has no effect on the direction of Advanced Wireless i.e., Advanced Wireless and King Yuan go up and down completely randomly.
Pair Corralation between Advanced Wireless and King Yuan
Assuming the 90 days trading horizon Advanced Wireless Semiconductor is expected to under-perform the King Yuan. But the stock apears to be less risky and, when comparing its historical volatility, Advanced Wireless Semiconductor is 1.04 times less risky than King Yuan. The stock trades about -0.02 of its potential returns per unit of risk. The King Yuan Electronics is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 10,550 in King Yuan Electronics on October 26, 2024 and sell it today you would earn a total of 800.00 from holding King Yuan Electronics or generate 7.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Advanced Wireless Semiconducto vs. King Yuan Electronics
Performance |
| Timeline |
| Advanced Wireless |
| King Yuan Electronics |
Advanced Wireless and King Yuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advanced Wireless and King Yuan
The main advantage of trading using opposite Advanced Wireless and King Yuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advanced Wireless position performs unexpectedly, King Yuan 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 King Yuan will offset losses from the drop in King Yuan's long position.| Advanced Wireless vs. WIN Semiconductors | Advanced Wireless vs. Visual Photonics Epitaxy | Advanced Wireless vs. GlobalWafers Co | Advanced Wireless vs. Unimicron Technology Corp |
| King Yuan vs. Unimicron Technology Corp | King Yuan vs. Kinsus Interconnect Technology | King Yuan vs. Novatek Microelectronics Corp | King Yuan vs. Delta Electronics |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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