Correlation Between IC Technology and Cuckoo Electronics
Can any of the company-specific risk be diversified away by investing in both IC Technology and Cuckoo Electronics 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 IC Technology and Cuckoo Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IC Technology Co and Cuckoo Electronics Co, you can compare the effects of market volatilities on IC Technology and Cuckoo Electronics 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 IC Technology with a short position of Cuckoo Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of IC Technology and Cuckoo Electronics.
Diversification Opportunities for IC Technology and Cuckoo Electronics
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 052860 and Cuckoo is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding IC Technology Co and Cuckoo Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cuckoo Electronics and IC Technology 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 IC Technology Co are associated (or correlated) with Cuckoo Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cuckoo Electronics has no effect on the direction of IC Technology i.e., IC Technology and Cuckoo Electronics go up and down completely randomly.
Pair Corralation between IC Technology and Cuckoo Electronics
Assuming the 90 days trading horizon IC Technology Co is expected to generate 1.14 times more return on investment than Cuckoo Electronics. However, IC Technology is 1.14 times more volatile than Cuckoo Electronics Co. It trades about 0.03 of its potential returns per unit of risk. Cuckoo Electronics Co is currently generating about -0.19 per unit of risk. If you would invest 160,100 in IC Technology Co on September 1, 2024 and sell it today you would earn a total of 1,100 from holding IC Technology Co or generate 0.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
IC Technology Co vs. Cuckoo Electronics Co
Performance |
| Timeline |
| IC Technology |
| Cuckoo Electronics |
IC Technology and Cuckoo Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IC Technology and Cuckoo Electronics
The main advantage of trading using opposite IC Technology and Cuckoo Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IC Technology position performs unexpectedly, Cuckoo Electronics 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 Cuckoo Electronics will offset losses from the drop in Cuckoo Electronics' long position.| IC Technology vs. Dongsin Engineering Construction | IC Technology vs. Doosan Fuel Cell | IC Technology vs. Daishin Balance 1 | IC Technology vs. Total Soft Bank |
| Cuckoo Electronics vs. Hyunwoo Industrial Co | Cuckoo Electronics vs. Myoung Shin Industrial | Cuckoo Electronics vs. Seoyon Topmetal Co | Cuckoo Electronics vs. Eagon Industrial 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |