Correlation Between AAC Technologies and Aerkomm
Can any of the company-specific risk be diversified away by investing in both AAC Technologies and Aerkomm 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 AAC Technologies and Aerkomm into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AAC Technologies Holdings and Aerkomm, you can compare the effects of market volatilities on AAC Technologies and Aerkomm 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 AAC Technologies with a short position of Aerkomm. Check out your portfolio center. Please also check ongoing floating volatility patterns of AAC Technologies and Aerkomm.
Diversification Opportunities for AAC Technologies and Aerkomm
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AAC and Aerkomm is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AAC Technologies Holdings and Aerkomm in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aerkomm and AAC Technologies 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 AAC Technologies Holdings are associated (or correlated) with Aerkomm. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aerkomm has no effect on the direction of AAC Technologies i.e., AAC Technologies and Aerkomm go up and down completely randomly.
Pair Corralation between AAC Technologies and Aerkomm
If you would invest 255.00 in AAC Technologies Holdings on September 1, 2024 and sell it today you would earn a total of 185.00 from holding AAC Technologies Holdings or generate 72.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AAC Technologies Holdings vs. Aerkomm
Performance |
| Timeline |
| AAC Technologies Holdings |
| Aerkomm |
AAC Technologies and Aerkomm Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AAC Technologies and Aerkomm
The main advantage of trading using opposite AAC Technologies and Aerkomm positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AAC Technologies position performs unexpectedly, Aerkomm 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 Aerkomm will offset losses from the drop in Aerkomm's long position.| AAC Technologies vs. AmpliTech Group | AAC Technologies vs. AAP Inc | AAC Technologies vs. Airgain | AAC Technologies vs. Amplitech Group |
| Aerkomm vs. AmpliTech Group | Aerkomm vs. AAP Inc | Aerkomm vs. Airgain | Aerkomm vs. AAC Technologies Holdings |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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