Correlation Between I Chiun and AU Optronics
Can any of the company-specific risk be diversified away by investing in both I Chiun and AU Optronics 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 I Chiun and AU Optronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between I Chiun Precision Industry and AU Optronics, you can compare the effects of market volatilities on I Chiun and AU Optronics 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 I Chiun with a short position of AU Optronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of I Chiun and AU Optronics.
Diversification Opportunities for I Chiun and AU Optronics
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 2486 and 2409 is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding I Chiun Precision Industry and AU Optronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AU Optronics and I Chiun 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 I Chiun Precision Industry are associated (or correlated) with AU Optronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AU Optronics has no effect on the direction of I Chiun i.e., I Chiun and AU Optronics go up and down completely randomly.
Pair Corralation between I Chiun and AU Optronics
Assuming the 90 days trading horizon I Chiun Precision Industry is expected to under-perform the AU Optronics. In addition to that, I Chiun is 1.17 times more volatile than AU Optronics. It trades about -0.15 of its total potential returns per unit of risk. AU Optronics is currently generating about 0.22 per unit of volatility. If you would invest 1,375 in AU Optronics on December 4, 2024 and sell it today you would earn a total of 105.00 from holding AU Optronics or generate 7.64% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 95.24% |
Values | Daily Returns |
I Chiun Precision Industry vs. AU Optronics
Performance |
Timeline |
I Chiun Precision |
AU Optronics |
I Chiun and AU Optronics Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with I Chiun and AU Optronics
The main advantage of trading using opposite I Chiun and AU Optronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if I Chiun position performs unexpectedly, AU Optronics 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 AU Optronics will offset losses from the drop in AU Optronics' long position.I Chiun vs. Everlight Electronics Co | I Chiun vs. Tyntek Corp | I Chiun vs. Optotech Corp | I Chiun vs. Bright Led Electronics |
AU Optronics vs. Innolux Corp | AU Optronics vs. United Microelectronics | AU Optronics vs. China Steel Corp | AU Optronics vs. Quanta Computer |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
Technical Analysis Check basic technical indicators and analysis based on most latest market data |