Correlation Between Aerkomm and AAC Technologies
Can any of the company-specific risk be diversified away by investing in both Aerkomm and AAC Technologies 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 Aerkomm and AAC Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aerkomm and AAC Technologies Holdings, you can compare the effects of market volatilities on Aerkomm and AAC Technologies 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 Aerkomm with a short position of AAC Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aerkomm and AAC Technologies.
Diversification Opportunities for Aerkomm and AAC Technologies
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aerkomm and AAC is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Aerkomm and AAC Technologies Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AAC Technologies Holdings and Aerkomm 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 Aerkomm are associated (or correlated) with AAC Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AAC Technologies Holdings has no effect on the direction of Aerkomm i.e., Aerkomm and AAC Technologies go up and down completely randomly.
Pair Corralation between Aerkomm and AAC Technologies
If you would invest 298.00 in AAC Technologies Holdings on August 29, 2024 and sell it today you would earn a total of 149.00 from holding AAC Technologies Holdings or generate 50.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aerkomm vs. AAC Technologies Holdings
Performance |
| Timeline |
| Aerkomm |
| AAC Technologies Holdings |
Aerkomm and AAC Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aerkomm and AAC Technologies
The main advantage of trading using opposite Aerkomm and AAC Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aerkomm position performs unexpectedly, AAC Technologies 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 AAC Technologies will offset losses from the drop in AAC Technologies' long position.| Aerkomm vs. Viavi Solutions | Aerkomm vs. SatixFy Communications | Aerkomm vs. Wialan Technologies | Aerkomm vs. Electronic Systems Technology |
| AAC Technologies vs. Viavi Solutions | AAC Technologies vs. SatixFy Communications | AAC Technologies vs. Wialan Technologies | AAC Technologies vs. Electronic Systems Technology |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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