Correlation Between Getac Technology and Quanta Computer
Can any of the company-specific risk be diversified away by investing in both Getac Technology and Quanta Computer 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 Getac Technology and Quanta Computer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Getac Technology Corp and Quanta Computer, you can compare the effects of market volatilities on Getac Technology and Quanta Computer 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 Getac Technology with a short position of Quanta Computer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Getac Technology and Quanta Computer.
Diversification Opportunities for Getac Technology and Quanta Computer
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Getac and Quanta is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Getac Technology Corp and Quanta Computer in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quanta Computer and Getac Technology 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 Getac Technology Corp are associated (or correlated) with Quanta Computer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quanta Computer has no effect on the direction of Getac Technology i.e., Getac Technology and Quanta Computer go up and down completely randomly.
Pair Corralation between Getac Technology and Quanta Computer
Assuming the 90 days trading horizon Getac Technology Corp is expected to under-perform the Quanta Computer. But the stock apears to be less risky and, when comparing its historical volatility, Getac Technology Corp is 1.35 times less risky than Quanta Computer. The stock trades about -0.01 of its potential returns per unit of risk. The Quanta Computer is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 25,650 in Quanta Computer on September 24, 2024 and sell it today you would earn a total of 2,100 from holding Quanta Computer or generate 8.19% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Getac Technology Corp vs. Quanta Computer
Performance |
Timeline |
Getac Technology Corp |
Quanta Computer |
Getac Technology and Quanta Computer Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Getac Technology and Quanta Computer
The main advantage of trading using opposite Getac Technology and Quanta Computer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Getac Technology position performs unexpectedly, Quanta Computer 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 Quanta Computer will offset losses from the drop in Quanta Computer's long position.Getac Technology vs. Century Wind Power | Getac Technology vs. Green World Fintech | Getac Technology vs. Ingentec | Getac Technology vs. Chaheng Precision Co |
Quanta Computer vs. Century Wind Power | Quanta Computer vs. Green World Fintech | Quanta Computer vs. Ingentec | Quanta Computer vs. Chaheng Precision Co |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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