Correlation Between Polaris Office and INTEKPLUS
Can any of the company-specific risk be diversified away by investing in both Polaris Office and INTEKPLUS 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 Polaris Office and INTEKPLUS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Polaris Office Corp and INTEKPLUS Co, you can compare the effects of market volatilities on Polaris Office and INTEKPLUS 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 Polaris Office with a short position of INTEKPLUS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Polaris Office and INTEKPLUS.
Diversification Opportunities for Polaris Office and INTEKPLUS
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Polaris and INTEKPLUS is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Polaris Office Corp and INTEKPLUS Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTEKPLUS and Polaris Office 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 Polaris Office Corp are associated (or correlated) with INTEKPLUS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INTEKPLUS has no effect on the direction of Polaris Office i.e., Polaris Office and INTEKPLUS go up and down completely randomly.
Pair Corralation between Polaris Office and INTEKPLUS
Assuming the 90 days trading horizon Polaris Office Corp is expected to generate 1.93 times more return on investment than INTEKPLUS. However, Polaris Office is 1.93 times more volatile than INTEKPLUS Co. It trades about 0.18 of its potential returns per unit of risk. INTEKPLUS Co is currently generating about -0.42 per unit of risk. If you would invest 537,000 in Polaris Office Corp on August 31, 2024 and sell it today you would earn a total of 113,000 from holding Polaris Office Corp or generate 21.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Polaris Office Corp vs. INTEKPLUS Co
Performance |
| Timeline |
| Polaris Office Corp |
| INTEKPLUS |
Polaris Office and INTEKPLUS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Polaris Office and INTEKPLUS
The main advantage of trading using opposite Polaris Office and INTEKPLUS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Polaris Office position performs unexpectedly, INTEKPLUS 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 INTEKPLUS will offset losses from the drop in INTEKPLUS's long position.| Polaris Office vs. Eagle Veterinary Technology | Polaris Office vs. AurosTechnology | Polaris Office vs. Insung Information Co | Polaris Office vs. Eugene Technology CoLtd |
| INTEKPLUS vs. Dongil Technology | INTEKPLUS vs. Daou Technology | INTEKPLUS vs. Dongbu Insurance Co | INTEKPLUS vs. Samsung Life Insurance |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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