Correlation Between IC Technology and ASTORY CoLtd
Can any of the company-specific risk be diversified away by investing in both IC Technology and ASTORY CoLtd 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 ASTORY CoLtd 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 ASTORY CoLtd, you can compare the effects of market volatilities on IC Technology and ASTORY CoLtd 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 ASTORY CoLtd. Check out your portfolio center. Please also check ongoing floating volatility patterns of IC Technology and ASTORY CoLtd.
Diversification Opportunities for IC Technology and ASTORY CoLtd
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 052860 and ASTORY is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding IC Technology Co and ASTORY CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASTORY CoLtd 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 ASTORY CoLtd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASTORY CoLtd has no effect on the direction of IC Technology i.e., IC Technology and ASTORY CoLtd go up and down completely randomly.
Pair Corralation between IC Technology and ASTORY CoLtd
Assuming the 90 days trading horizon IC Technology is expected to generate 15.76 times less return on investment than ASTORY CoLtd. But when comparing it to its historical volatility, IC Technology Co is 1.93 times less risky than ASTORY CoLtd. It trades about 0.03 of its potential returns per unit of risk. ASTORY CoLtd is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 700,000 in ASTORY CoLtd on September 1, 2024 and sell it today you would earn a total of 96,000 from holding ASTORY CoLtd or generate 13.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
IC Technology Co vs. ASTORY CoLtd
Performance |
| Timeline |
| IC Technology |
| ASTORY CoLtd |
IC Technology and ASTORY CoLtd Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IC Technology and ASTORY CoLtd
The main advantage of trading using opposite IC Technology and ASTORY CoLtd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IC Technology position performs unexpectedly, ASTORY CoLtd 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 ASTORY CoLtd will offset losses from the drop in ASTORY CoLtd's 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 |
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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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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