Correlation Between Analog Integrations and Asia Tech

Can any of the company-specific risk be diversified away by investing in both Analog Integrations and Asia Tech 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 Analog Integrations and Asia Tech into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Analog Integrations and Asia Tech Image, you can compare the effects of market volatilities on Analog Integrations and Asia Tech 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 Analog Integrations with a short position of Asia Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Analog Integrations and Asia Tech.

Diversification Opportunities for Analog Integrations and Asia Tech

-0.25

Correlation Coefficient

Analog Integrations  Asia Tech

Very good diversification

The 3 months correlation between Analog and Asia is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Analog Integrations and Asia Tech Image in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asia Tech Image and Analog Integrations 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 Analog Integrations are associated (or correlated) with Asia Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asia Tech Image has no effect on the direction of Analog Integrations i.e., Analog Integrations and Asia Tech go up and down completely randomly.

Pair Corralation between Analog Integrations and Asia Tech

Assuming the 90 days trading horizon Analog Integrations is expected to under-perform the Asia Tech. But the stock apears to be less risky and, when comparing its historical volatility, Analog Integrations is 1.18 times less risky than Asia Tech. The stock trades about -0.12 of its potential returns per unit of risk. The Asia Tech Image is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  9,880  in Asia Tech Image on October 22, 2024 and sell it today you would earn a total of  670.00  from holding Asia Tech Image or generate 6.78% return on investment over 90 days.

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

Analog Integrations  vs.  Asia Tech Image

Analog Integrations

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Analog Integrations has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in February 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Asia Tech Image

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Asia Tech Image are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Asia Tech may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Analog Integrations and Asia Tech

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

The idea behind Analog Integrations and Asia Tech Image 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.