Correlation Between Ostin Technology and AU Optronics
Can any of the company-specific risk be diversified away by investing in both Ostin Technology and AU Optronics 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 Ostin Technology and AU Optronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ostin Technology Group and AU Optronics Corp, you can compare the effects of market volatilities on Ostin Technology and AU Optronics 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 Ostin Technology with a short position of AU Optronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ostin Technology and AU Optronics.
Diversification Opportunities for Ostin Technology and AU Optronics
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ostin and AUOTY is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Ostin Technology Group and AU Optronics Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AU Optronics Corp and Ostin Technology 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 Ostin Technology Group are associated (or correlated) with AU Optronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AU Optronics Corp has no effect on the direction of Ostin Technology i.e., Ostin Technology and AU Optronics go up and down completely randomly.
Pair Corralation between Ostin Technology and AU Optronics
If you would invest 590.00 in AU Optronics Corp on August 28, 2024 and sell it today you would earn a total of 0.00 from holding AU Optronics Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Ostin Technology Group vs. AU Optronics Corp
Performance |
| Timeline |
| Ostin Technology |
| AU Optronics Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Ostin Technology and AU Optronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ostin Technology and AU Optronics
The main advantage of trading using opposite Ostin Technology and AU Optronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ostin Technology position performs unexpectedly, AU Optronics 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 AU Optronics will offset losses from the drop in AU Optronics' long position.| Ostin Technology vs. Plexus Corp | Ostin Technology vs. Jabil Circuit | Ostin Technology vs. Sanmina | Ostin Technology vs. Methode Electronics |
| AU Optronics vs. alpha En | AU Optronics vs. Alps Electric Co | AU Optronics vs. Bitmine Immersion Technologies | AU Optronics vs. American Aires |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |