Correlation Between Asustek Computer and Sunko Ink
Can any of the company-specific risk be diversified away by investing in both Asustek Computer and Sunko Ink 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 Asustek Computer and Sunko Ink into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asustek Computer and Sunko Ink Co, you can compare the effects of market volatilities on Asustek Computer and Sunko Ink 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 Asustek Computer with a short position of Sunko Ink. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asustek Computer and Sunko Ink.
Diversification Opportunities for Asustek Computer and Sunko Ink
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Asustek and Sunko is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Asustek Computer and Sunko Ink Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sunko Ink and Asustek 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 Asustek Computer are associated (or correlated) with Sunko Ink. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sunko Ink has no effect on the direction of Asustek Computer i.e., Asustek Computer and Sunko Ink go up and down completely randomly.
Pair Corralation between Asustek Computer and Sunko Ink
Assuming the 90 days trading horizon Asustek Computer is expected to generate 0.84 times more return on investment than Sunko Ink. However, Asustek Computer is 1.19 times less risky than Sunko Ink. It trades about 0.09 of its potential returns per unit of risk. Sunko Ink Co is currently generating about 0.02 per unit of risk. If you would invest 27,100 in Asustek Computer on September 26, 2024 and sell it today you would earn a total of 34,400 from holding Asustek Computer or generate 126.94% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 99.79% |
Values | Daily Returns |
Asustek Computer vs. Sunko Ink Co
Performance |
Timeline |
Asustek Computer |
Sunko Ink |
Asustek Computer and Sunko Ink Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Asustek Computer and Sunko Ink
The main advantage of trading using opposite Asustek Computer and Sunko Ink positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asustek Computer position performs unexpectedly, Sunko Ink 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 Sunko Ink will offset losses from the drop in Sunko Ink's long position.Asustek Computer vs. Quanta Computer | Asustek Computer vs. Acer Inc | Asustek Computer vs. United Microelectronics | Asustek Computer vs. Compal Electronics |
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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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