Correlation Between Wialan Technologies and Amada
Can any of the company-specific risk be diversified away by investing in both Wialan Technologies and Amada 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 Wialan Technologies and Amada into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wialan Technologies and Amada Co, you can compare the effects of market volatilities on Wialan Technologies and Amada 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 Wialan Technologies with a short position of Amada. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wialan Technologies and Amada.
Diversification Opportunities for Wialan Technologies and Amada
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Wialan and Amada is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Wialan Technologies and Amada Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amada and Wialan 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 Wialan Technologies are associated (or correlated) with Amada. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amada has no effect on the direction of Wialan Technologies i.e., Wialan Technologies and Amada go up and down completely randomly.
Pair Corralation between Wialan Technologies and Amada
Given the investment horizon of 90 days Wialan Technologies is expected to under-perform the Amada. In addition to that, Wialan Technologies is 4.62 times more volatile than Amada Co. It trades about -0.08 of its total potential returns per unit of risk. Amada Co is currently generating about -0.22 per unit of volatility. If you would invest 1,032 in Amada Co on September 5, 2024 and sell it today you would lose (102.00) from holding Amada Co or give up 9.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wialan Technologies vs. Amada Co
Performance |
| Timeline |
| Wialan Technologies |
| Amada |
Wialan Technologies and Amada Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wialan Technologies and Amada
The main advantage of trading using opposite Wialan Technologies and Amada positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wialan Technologies position performs unexpectedly, Amada 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 Amada will offset losses from the drop in Amada's long position.| Wialan Technologies vs. Boxlight Corp Class | Wialan Technologies vs. Siyata Mobile | Wialan Technologies vs. ClearOne | Wialan Technologies vs. Mobilicom Limited American |
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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 Transaction History module to view history of all your transactions and understand their impact on performance.
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