Correlation Between IC Technology and Osteonic
Can any of the company-specific risk be diversified away by investing in both IC Technology and Osteonic 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 Osteonic 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 Osteonic Co, you can compare the effects of market volatilities on IC Technology and Osteonic 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 Osteonic. Check out your portfolio center. Please also check ongoing floating volatility patterns of IC Technology and Osteonic.
Diversification Opportunities for IC Technology and Osteonic
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between 052860 and Osteonic is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding IC Technology Co and Osteonic Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Osteonic 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 Osteonic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Osteonic has no effect on the direction of IC Technology i.e., IC Technology and Osteonic go up and down completely randomly.
Pair Corralation between IC Technology and Osteonic
Assuming the 90 days trading horizon IC Technology Co is expected to generate 0.45 times more return on investment than Osteonic. However, IC Technology Co is 2.21 times less risky than Osteonic. It trades about -0.04 of its potential returns per unit of risk. Osteonic Co is currently generating about -0.15 per unit of risk. If you would invest 162,000 in IC Technology Co on August 29, 2024 and sell it today you would lose (2,300) from holding IC Technology Co or give up 1.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
IC Technology Co vs. Osteonic Co
Performance |
| Timeline |
| IC Technology |
| Osteonic |
IC Technology and Osteonic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IC Technology and Osteonic
The main advantage of trading using opposite IC Technology and Osteonic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IC Technology position performs unexpectedly, Osteonic 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 Osteonic will offset losses from the drop in Osteonic's long position.| IC Technology vs. Daou Data Corp | IC Technology vs. Busan Industrial Co | IC Technology vs. Busan Ind | IC Technology vs. Shinhan WTI Futures |
| Osteonic vs. Solution Advanced Technology | Osteonic vs. IC Technology Co | Osteonic vs. Dongil Technology | Osteonic vs. Zaram Technology |
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.
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