Correlation Between I Components and FNSTech
Can any of the company-specific risk be diversified away by investing in both I Components and FNSTech 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 I Components and FNSTech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between i Components Co and FNSTech Co, you can compare the effects of market volatilities on I Components and FNSTech 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 I Components with a short position of FNSTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of I Components and FNSTech.
Diversification Opportunities for I Components and FNSTech
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between 059100 and FNSTech is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding i Components Co and FNSTech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FNSTech and I Components 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 i Components Co are associated (or correlated) with FNSTech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FNSTech has no effect on the direction of I Components i.e., I Components and FNSTech go up and down completely randomly.
Pair Corralation between I Components and FNSTech
Assuming the 90 days trading horizon i Components Co is expected to generate 0.45 times more return on investment than FNSTech. However, i Components Co is 2.22 times less risky than FNSTech. It trades about 0.14 of its potential returns per unit of risk. FNSTech Co is currently generating about -0.01 per unit of risk. If you would invest 463,500 in i Components Co on October 14, 2024 and sell it today you would earn a total of 74,500 from holding i Components Co or generate 16.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
i Components Co vs. FNSTech Co
Performance |
| Timeline |
| i Components |
| FNSTech |
I Components and FNSTech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with I Components and FNSTech
The main advantage of trading using opposite I Components and FNSTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if I Components position performs unexpectedly, FNSTech 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 FNSTech will offset losses from the drop in FNSTech's long position.| I Components vs. FNSTech Co | I Components vs. PH Tech Co | I Components vs. PLAYWITH | I Components vs. Woori Technology |
| FNSTech vs. Lake Materials Co | FNSTech vs. Sejong Telecom | FNSTech vs. INNOX Advanced Materials | FNSTech vs. Kolon Plastics |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| CEOs Directory Screen CEOs from public companies around the world |