Correlation Between Getac Technology and Wiwynn Corp

Can any of the company-specific risk be diversified away by investing in both Getac Technology and Wiwynn Corp 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 Wiwynn Corp 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 Wiwynn Corp, you can compare the effects of market volatilities on Getac Technology and Wiwynn Corp 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 Wiwynn Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Getac Technology and Wiwynn Corp.

Diversification Opportunities for Getac Technology and Wiwynn Corp

-0.42

Correlation Coefficient

Getac Technology  Wiwynn Corp

Very good diversification

The 3 months correlation between Getac and Wiwynn is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Getac Technology Corp and Wiwynn Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wiwynn Corp 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 Wiwynn Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wiwynn Corp has no effect on the direction of Getac Technology i.e., Getac Technology and Wiwynn Corp go up and down completely randomly.

Pair Corralation between Getac Technology and Wiwynn Corp

Assuming the 90 days trading horizon Getac Technology is expected to generate 16.35 times less return on investment than Wiwynn Corp. But when comparing it to its historical volatility, Getac Technology Corp is 2.0 times less risky than Wiwynn Corp. It trades about 0.02 of its potential returns per unit of risk. Wiwynn Corp is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest  199,000  in Wiwynn Corp on October 12, 2024 and sell it today you would earn a total of  54,500  from holding Wiwynn Corp or generate 27.39% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Getac Technology Corp  vs.  Wiwynn Corp

Getac Technology Corp

Risk-Adjusted Performance

1 of 100

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Getac Technology Corp are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable basic indicators, Getac Technology is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Wiwynn Corp

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Wiwynn Corp are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Wiwynn Corp showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Getac Technology and Wiwynn Corp

The main advantage of trading using opposite Getac Technology and Wiwynn Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Getac Technology position performs unexpectedly, Wiwynn Corp 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 Wiwynn Corp will offset losses from the drop in Wiwynn Corp's long position.

The idea behind Getac Technology Corp and Wiwynn Corp 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.