Correlation Between BenQ Materials and Amtran Technology
Can any of the company-specific risk be diversified away by investing in both BenQ Materials and Amtran Technology 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 BenQ Materials and Amtran Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BenQ Materials Corp and Amtran Technology Co, you can compare the effects of market volatilities on BenQ Materials and Amtran Technology 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 BenQ Materials with a short position of Amtran Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of BenQ Materials and Amtran Technology.
Diversification Opportunities for BenQ Materials and Amtran Technology
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between BenQ and Amtran is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding BenQ Materials Corp and Amtran Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amtran Technology and BenQ Materials 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 BenQ Materials Corp are associated (or correlated) with Amtran Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amtran Technology has no effect on the direction of BenQ Materials i.e., BenQ Materials and Amtran Technology go up and down completely randomly.
Pair Corralation between BenQ Materials and Amtran Technology
Assuming the 90 days trading horizon BenQ Materials is expected to generate 9.07 times less return on investment than Amtran Technology. But when comparing it to its historical volatility, BenQ Materials Corp is 1.57 times less risky than Amtran Technology. It trades about 0.01 of its potential returns per unit of risk. Amtran Technology Co is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,270 in Amtran Technology Co on August 31, 2024 and sell it today you would earn a total of 675.00 from holding Amtran Technology Co or generate 53.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BenQ Materials Corp vs. Amtran Technology Co
Performance |
| Timeline |
| BenQ Materials Corp |
| Amtran Technology |
BenQ Materials and Amtran Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BenQ Materials and Amtran Technology
The main advantage of trading using opposite BenQ Materials and Amtran Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BenQ Materials position performs unexpectedly, Amtran Technology 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 Amtran Technology will offset losses from the drop in Amtran Technology's long position.| BenQ Materials vs. United Microelectronics | BenQ Materials vs. Winbond Electronics Corp | BenQ Materials vs. Macronix International Co |
| Amtran Technology vs. Bright Led Electronics | Amtran Technology vs. Grand Plastic Technology | Amtran Technology vs. BenQ Materials Corp | Amtran Technology vs. First Insurance 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 Stocks Directory module to find actively traded stocks across global markets.
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