Correlation Between Techwing and Incar Financial
Can any of the company-specific risk be diversified away by investing in both Techwing and Incar Financial 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 Techwing and Incar Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Techwing and Incar Financial Service, you can compare the effects of market volatilities on Techwing and Incar Financial 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 Techwing with a short position of Incar Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Techwing and Incar Financial.
Diversification Opportunities for Techwing and Incar Financial
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Techwing and Incar is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Techwing and Incar Financial Service in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Incar Financial Service and Techwing 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 Techwing are associated (or correlated) with Incar Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Incar Financial Service has no effect on the direction of Techwing i.e., Techwing and Incar Financial go up and down completely randomly.
Pair Corralation between Techwing and Incar Financial
Assuming the 90 days trading horizon Techwing is expected to generate 1.69 times more return on investment than Incar Financial. However, Techwing is 1.69 times more volatile than Incar Financial Service. It trades about 0.29 of its potential returns per unit of risk. Incar Financial Service is currently generating about 0.16 per unit of risk. If you would invest 3,940,000 in Techwing on October 28, 2024 and sell it today you would earn a total of 1,010,000 from holding Techwing or generate 25.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Techwing vs. Incar Financial Service
Performance |
| Timeline |
| Techwing |
| Incar Financial Service |
Techwing and Incar Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Techwing and Incar Financial
The main advantage of trading using opposite Techwing and Incar Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Techwing position performs unexpectedly, Incar Financial 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 Incar Financial will offset losses from the drop in Incar Financial's long position.| Techwing vs. Korea Information Engineering | Techwing vs. FoodNamoo | Techwing vs. Haitai Confectionery Foods | Techwing vs. Insung Information Co |
| Incar Financial vs. Miwon Chemical | Incar Financial vs. CG Hi Tech | Incar Financial vs. Display Tech Co | Incar Financial vs. Digital Power Communications |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |