Correlation Between Stic Investments and NewFlex Technology
Can any of the company-specific risk be diversified away by investing in both Stic Investments and NewFlex 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 Stic Investments and NewFlex Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stic Investments and NewFlex Technology Co, you can compare the effects of market volatilities on Stic Investments and NewFlex 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 Stic Investments with a short position of NewFlex Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stic Investments and NewFlex Technology.
Diversification Opportunities for Stic Investments and NewFlex Technology
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Stic and NewFlex is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Stic Investments and NewFlex Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NewFlex Technology and Stic Investments 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 Stic Investments are associated (or correlated) with NewFlex Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NewFlex Technology has no effect on the direction of Stic Investments i.e., Stic Investments and NewFlex Technology go up and down completely randomly.
Pair Corralation between Stic Investments and NewFlex Technology
Assuming the 90 days trading horizon Stic Investments is expected to generate 0.48 times more return on investment than NewFlex Technology. However, Stic Investments is 2.07 times less risky than NewFlex Technology. It trades about 0.05 of its potential returns per unit of risk. NewFlex Technology Co is currently generating about 0.01 per unit of risk. If you would invest 637,725 in Stic Investments on August 26, 2024 and sell it today you would earn a total of 142,275 from holding Stic Investments or generate 22.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stic Investments vs. NewFlex Technology Co
Performance |
| Timeline |
| Stic Investments |
| NewFlex Technology |
Stic Investments and NewFlex Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stic Investments and NewFlex Technology
The main advantage of trading using opposite Stic Investments and NewFlex Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stic Investments position performs unexpectedly, NewFlex 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 NewFlex Technology will offset losses from the drop in NewFlex Technology's long position.| Stic Investments vs. Korea Real Estate | Stic Investments vs. Korea Ratings Co | Stic Investments vs. IQuest Co | Stic Investments vs. Wonbang Tech Co |
| NewFlex Technology vs. CJ Seafood Corp | NewFlex Technology vs. Dong A Steel Technology | NewFlex Technology vs. Foodnamoo | NewFlex Technology vs. Guyoung Technology Co |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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