Correlation Between InfoBank and ITM Semiconductor
Can any of the company-specific risk be diversified away by investing in both InfoBank and ITM Semiconductor 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 InfoBank and ITM Semiconductor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between InfoBank and ITM Semiconductor Co, you can compare the effects of market volatilities on InfoBank and ITM Semiconductor 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 InfoBank with a short position of ITM Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of InfoBank and ITM Semiconductor.
Diversification Opportunities for InfoBank and ITM Semiconductor
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between InfoBank and ITM is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding InfoBank and ITM Semiconductor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ITM Semiconductor and InfoBank 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 InfoBank are associated (or correlated) with ITM Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ITM Semiconductor has no effect on the direction of InfoBank i.e., InfoBank and ITM Semiconductor go up and down completely randomly.
Pair Corralation between InfoBank and ITM Semiconductor
Assuming the 90 days trading horizon InfoBank is expected to under-perform the ITM Semiconductor. But the stock apears to be less risky and, when comparing its historical volatility, InfoBank is 1.07 times less risky than ITM Semiconductor. The stock trades about -0.08 of its potential returns per unit of risk. The ITM Semiconductor Co is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,250,000 in ITM Semiconductor Co on October 28, 2024 and sell it today you would earn a total of 19,000 from holding ITM Semiconductor Co or generate 1.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
InfoBank vs. ITM Semiconductor Co
Performance |
| Timeline |
| InfoBank |
| ITM Semiconductor |
InfoBank and ITM Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with InfoBank and ITM Semiconductor
The main advantage of trading using opposite InfoBank and ITM Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if InfoBank position performs unexpectedly, ITM Semiconductor 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 ITM Semiconductor will offset losses from the drop in ITM Semiconductor's long position.| InfoBank vs. Samsung Electronics Co | InfoBank vs. Samsung Electronics Co | InfoBank vs. SK Hynix | InfoBank vs. HMM Co |
| ITM Semiconductor vs. Woorim Machinery Co | ITM Semiconductor vs. Hyundai Engineering Construction | ITM Semiconductor vs. Hanshin Construction Co | ITM Semiconductor vs. SEOJEON ELECTRIC MACHINERY |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |