Correlation Between FNSTech and I Components
Can any of the company-specific risk be diversified away by investing in both FNSTech and I Components 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 FNSTech and I Components into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FNSTech Co and i Components Co, you can compare the effects of market volatilities on FNSTech and I Components 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 FNSTech with a short position of I Components. Check out your portfolio center. Please also check ongoing floating volatility patterns of FNSTech and I Components.
Diversification Opportunities for FNSTech and I Components
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between FNSTech and 059100 is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding FNSTech Co and i Components Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on i Components and FNSTech 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 FNSTech Co are associated (or correlated) with I Components. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of i Components has no effect on the direction of FNSTech i.e., FNSTech and I Components go up and down completely randomly.
Pair Corralation between FNSTech and I Components
Assuming the 90 days trading horizon FNSTech Co is expected to generate 1.22 times more return on investment than I Components. However, FNSTech is 1.22 times more volatile than i Components Co. It trades about 0.03 of its potential returns per unit of risk. i Components Co is currently generating about -0.01 per unit of risk. If you would invest 723,000 in FNSTech Co on October 14, 2024 and sell it today you would earn a total of 213,000 from holding FNSTech Co or generate 29.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.83% |
| Values | Daily Returns |
FNSTech Co vs. i Components Co
Performance |
| Timeline |
| FNSTech |
| i Components |
FNSTech and I Components Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FNSTech and I Components
The main advantage of trading using opposite FNSTech and I Components positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FNSTech position performs unexpectedly, I Components 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 I Components will offset losses from the drop in I Components' long position.| FNSTech vs. Lake Materials Co | FNSTech vs. Sejong Telecom | FNSTech vs. INNOX Advanced Materials | FNSTech vs. Kolon Plastics |
| I Components vs. FNSTech Co | I Components vs. PH Tech Co | I Components vs. PLAYWITH | I Components vs. Woori 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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