Correlation Between Analog Integrations and Wah Hong
Can any of the company-specific risk be diversified away by investing in both Analog Integrations and Wah Hong 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 Wah Hong into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Analog Integrations and Wah Hong Industrial, you can compare the effects of market volatilities on Analog Integrations and Wah Hong 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 Wah Hong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Analog Integrations and Wah Hong.
Diversification Opportunities for Analog Integrations and Wah Hong
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Analog and Wah is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Analog Integrations and Wah Hong Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wah Hong Industrial 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 Wah Hong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wah Hong Industrial has no effect on the direction of Analog Integrations i.e., Analog Integrations and Wah Hong go up and down completely randomly.
Pair Corralation between Analog Integrations and Wah Hong
Assuming the 90 days trading horizon Analog Integrations is expected to generate 1.61 times more return on investment than Wah Hong. However, Analog Integrations is 1.61 times more volatile than Wah Hong Industrial. It trades about 0.07 of its potential returns per unit of risk. Wah Hong Industrial is currently generating about -0.13 per unit of risk. If you would invest 9,350 in Analog Integrations on December 29, 2024 and sell it today you would earn a total of 950.00 from holding Analog Integrations or generate 10.16% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 98.25% |
Values | Daily Returns |
Analog Integrations vs. Wah Hong Industrial
Performance |
Timeline |
Analog Integrations |
Wah Hong Industrial |
Analog Integrations and Wah Hong Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Analog Integrations and Wah Hong
The main advantage of trading using opposite Analog Integrations and Wah Hong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Analog Integrations position performs unexpectedly, Wah Hong 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 Wah Hong will offset losses from the drop in Wah Hong's long position.Analog Integrations vs. Advanced Wireless Semiconductor | Analog Integrations vs. Tainet Communication System | Analog Integrations vs. WiseChip Semiconductor | Analog Integrations vs. WIN Semiconductors |
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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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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