Correlation Between Asustek Computer and Global Mixed

Can any of the company-specific risk be diversified away by investing in both Asustek Computer and Global Mixed 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 Asustek Computer and Global Mixed into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Asustek Computer and Global Mixed Mode Technology, you can compare the effects of market volatilities on Asustek Computer and Global Mixed 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 Asustek Computer with a short position of Global Mixed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asustek Computer and Global Mixed.

Diversification Opportunities for Asustek Computer and Global Mixed

0.0

Correlation Coefficient

Asustek Computer  Global Mixed

Pay attention - limited upside

The 3 months correlation between Asustek and Global is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Asustek Computer and Global Mixed Mode Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Mixed Mode and Asustek Computer 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 Asustek Computer are associated (or correlated) with Global Mixed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Mixed Mode has no effect on the direction of Asustek Computer i.e., Asustek Computer and Global Mixed go up and down completely randomly.

Pair Corralation between Asustek Computer and Global Mixed

If you would invest  42,250  in Asustek Computer on February 3, 2024 and sell it today you would earn a total of  500.00  from holding Asustek Computer or generate 1.18% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Asustek Computer  vs.  Global Mixed Mode Technology

Asustek Computer

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Asustek Computer has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Asustek Computer is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Global Mixed Mode

Risk-Adjusted Performance

0 of 100

Good

Over the last 90 days Global Mixed Mode Technology has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Global Mixed is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Asustek Computer and Global Mixed

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

The idea behind Asustek Computer and Global Mixed Mode Technology 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.