Correlation Between AP Memory and Fitipower Integrated
Can any of the company-specific risk be diversified away by investing in both AP Memory and Fitipower Integrated 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 AP Memory and Fitipower Integrated into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AP Memory Technology and Fitipower Integrated Technology, you can compare the effects of market volatilities on AP Memory and Fitipower Integrated 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 AP Memory with a short position of Fitipower Integrated. Check out your portfolio center. Please also check ongoing floating volatility patterns of AP Memory and Fitipower Integrated.
Diversification Opportunities for AP Memory and Fitipower Integrated
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between 6531 and Fitipower is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding AP Memory Technology and Fitipower Integrated Technolog in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fitipower Integrated and AP Memory 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 AP Memory Technology are associated (or correlated) with Fitipower Integrated. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fitipower Integrated has no effect on the direction of AP Memory i.e., AP Memory and Fitipower Integrated go up and down completely randomly.
Pair Corralation between AP Memory and Fitipower Integrated
Assuming the 90 days trading horizon AP Memory Technology is expected to generate 1.09 times more return on investment than Fitipower Integrated. However, AP Memory is 1.09 times more volatile than Fitipower Integrated Technology. It trades about -0.04 of its potential returns per unit of risk. Fitipower Integrated Technology is currently generating about -0.08 per unit of risk. If you would invest 31,600 in AP Memory Technology on August 31, 2024 and sell it today you would lose (2,100) from holding AP Memory Technology or give up 6.65% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 98.41% |
Values | Daily Returns |
AP Memory Technology vs. Fitipower Integrated Technolog
Performance |
Timeline |
AP Memory Technology |
Fitipower Integrated |
AP Memory and Fitipower Integrated Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with AP Memory and Fitipower Integrated
The main advantage of trading using opposite AP Memory and Fitipower Integrated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AP Memory position performs unexpectedly, Fitipower Integrated 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 Fitipower Integrated will offset losses from the drop in Fitipower Integrated's long position.AP Memory vs. Global Unichip Corp | AP Memory vs. Alchip Technologies | AP Memory vs. FocalTech Systems Co | AP Memory vs. Asmedia Technology |
Fitipower Integrated vs. FocalTech Systems Co | Fitipower Integrated vs. Novatek Microelectronics Corp | Fitipower Integrated vs. Sitronix Technology Corp | Fitipower Integrated vs. AP Memory 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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