Correlation Between Da Lue and Asmedia Technology

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Can any of the company-specific risk be diversified away by investing in both Da Lue and Asmedia Technology 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 Da Lue and Asmedia Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Da Lue International and Asmedia Technology, you can compare the effects of market volatilities on Da Lue and Asmedia Technology 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 Da Lue with a short position of Asmedia Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Da Lue and Asmedia Technology.

Diversification Opportunities for Da Lue and Asmedia Technology

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between 4804 and Asmedia is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Da Lue International and Asmedia Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asmedia Technology and Da Lue 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 Da Lue International are associated (or correlated) with Asmedia Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asmedia Technology has no effect on the direction of Da Lue i.e., Da Lue and Asmedia Technology go up and down completely randomly.

Pair Corralation between Da Lue and Asmedia Technology

If you would invest  149,000  in Asmedia Technology on September 23, 2024 and sell it today you would earn a total of  51,000  from holding Asmedia Technology or generate 34.23% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy98.46%
ValuesDaily Returns

Da Lue International  vs.  Asmedia Technology

 Performance 
       Timeline  
Da Lue International 

Risk-Adjusted Performance

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Strong
Very Weak
Over the last 90 days Da Lue International has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Da Lue is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.
Asmedia Technology 

Risk-Adjusted Performance

11 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Asmedia Technology are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Asmedia Technology showed solid returns over the last few months and may actually be approaching a breakup point.

Da Lue and Asmedia Technology Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Da Lue and Asmedia Technology

The main advantage of trading using opposite Da Lue and Asmedia Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Da Lue position performs unexpectedly, Asmedia Technology 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 Asmedia Technology will offset losses from the drop in Asmedia Technology's long position.
The idea behind Da Lue International and Asmedia Technology pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.

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