Correlation Between Quanta Computer and Asia Tech
Can any of the company-specific risk be diversified away by investing in both Quanta Computer and Asia Tech 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 Quanta Computer and Asia Tech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Quanta Computer and Asia Tech Image, you can compare the effects of market volatilities on Quanta Computer and Asia Tech 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 Quanta Computer with a short position of Asia Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Quanta Computer and Asia Tech.
Diversification Opportunities for Quanta Computer and Asia Tech
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Quanta and Asia is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Quanta Computer and Asia Tech Image in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asia Tech Image and Quanta Computer 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 Quanta Computer are associated (or correlated) with Asia Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asia Tech Image has no effect on the direction of Quanta Computer i.e., Quanta Computer and Asia Tech go up and down completely randomly.
Pair Corralation between Quanta Computer and Asia Tech
Assuming the 90 days trading horizon Quanta Computer is expected to under-perform the Asia Tech. But the stock apears to be less risky and, when comparing its historical volatility, Quanta Computer is 1.76 times less risky than Asia Tech. The stock trades about -0.07 of its potential returns per unit of risk. The Asia Tech Image is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 9,120 in Asia Tech Image on September 26, 2024 and sell it today you would earn a total of 1,430 from holding Asia Tech Image or generate 15.68% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Quanta Computer vs. Asia Tech Image
Performance |
Timeline |
Quanta Computer |
Asia Tech Image |
Quanta Computer and Asia Tech Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Quanta Computer and Asia Tech
The main advantage of trading using opposite Quanta Computer and Asia Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Quanta Computer position performs unexpectedly, Asia Tech 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 Asia Tech will offset losses from the drop in Asia Tech's long position.Quanta Computer vs. Century Wind Power | Quanta Computer vs. Green World Fintech | Quanta Computer vs. Ingentec | Quanta Computer vs. Chaheng Precision Co |
Asia Tech vs. Advantech Co | Asia Tech vs. IEI Integration Corp | Asia Tech vs. Flytech Technology Co | Asia Tech vs. Ennoconn Corp |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |