Correlation Between Wiwynn Corp and Polytronics Technology
Can any of the company-specific risk be diversified away by investing in both Wiwynn Corp and Polytronics Technology 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 Wiwynn Corp and Polytronics Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wiwynn Corp and Polytronics Technology Corp, you can compare the effects of market volatilities on Wiwynn Corp and Polytronics Technology 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 Wiwynn Corp with a short position of Polytronics Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wiwynn Corp and Polytronics Technology.
Diversification Opportunities for Wiwynn Corp and Polytronics Technology
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Wiwynn and Polytronics is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Wiwynn Corp and Polytronics Technology Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Polytronics Technology and Wiwynn Corp 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 Wiwynn Corp are associated (or correlated) with Polytronics Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Polytronics Technology has no effect on the direction of Wiwynn Corp i.e., Wiwynn Corp and Polytronics Technology go up and down completely randomly.
Pair Corralation between Wiwynn Corp and Polytronics Technology
Assuming the 90 days trading horizon Wiwynn Corp is expected to generate 0.95 times more return on investment than Polytronics Technology. However, Wiwynn Corp is 1.05 times less risky than Polytronics Technology. It trades about 0.17 of its potential returns per unit of risk. Polytronics Technology Corp is currently generating about -0.03 per unit of risk. If you would invest 182,000 in Wiwynn Corp on September 15, 2024 and sell it today you would earn a total of 69,500 from holding Wiwynn Corp or generate 38.19% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 98.44% |
Values | Daily Returns |
Wiwynn Corp vs. Polytronics Technology Corp
Performance |
Timeline |
Wiwynn Corp |
Polytronics Technology |
Wiwynn Corp and Polytronics Technology Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Wiwynn Corp and Polytronics Technology
The main advantage of trading using opposite Wiwynn Corp and Polytronics Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wiwynn Corp position performs unexpectedly, Polytronics Technology 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 Polytronics Technology will offset losses from the drop in Polytronics Technology's long position.Wiwynn Corp vs. Aspeed Technology | Wiwynn Corp vs. Unimicron Technology Corp | Wiwynn Corp vs. Asmedia Technology | Wiwynn Corp vs. Novatek Microelectronics Corp |
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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 CEOs Directory module to screen CEOs from public companies around the world.
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