Correlation Between Stic Investments and People Technology
Can any of the company-specific risk be diversified away by investing in both Stic Investments and People 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 People 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 People Technology, you can compare the effects of market volatilities on Stic Investments and People 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 People Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stic Investments and People Technology.
Diversification Opportunities for Stic Investments and People Technology
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Stic and People is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Stic Investments and People Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on People 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 People Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of People Technology has no effect on the direction of Stic Investments i.e., Stic Investments and People Technology go up and down completely randomly.
Pair Corralation between Stic Investments and People Technology
Assuming the 90 days trading horizon Stic Investments is expected to generate 0.69 times more return on investment than People Technology. However, Stic Investments is 1.46 times less risky than People Technology. It trades about 0.05 of its potential returns per unit of risk. People Technology is currently generating about 0.0 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 | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stic Investments vs. People Technology
Performance |
| Timeline |
| Stic Investments |
| People Technology |
Stic Investments and People Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stic Investments and People Technology
The main advantage of trading using opposite Stic Investments and People Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stic Investments position performs unexpectedly, People 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 People Technology will offset losses from the drop in People 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 |
| People Technology vs. Golden Bridge Investment | People Technology vs. Dong A Steel Technology | People Technology vs. Global Standard Technology | People Technology vs. Stic Investments |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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