Correlation Between ChipsMedia and FNSTech
Can any of the company-specific risk be diversified away by investing in both ChipsMedia 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 ChipsMedia and FNSTech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ChipsMedia and FNSTech Co, you can compare the effects of market volatilities on ChipsMedia 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 ChipsMedia with a short position of FNSTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of ChipsMedia and FNSTech.
Diversification Opportunities for ChipsMedia and FNSTech
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ChipsMedia and FNSTech is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding ChipsMedia and FNSTech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FNSTech and ChipsMedia 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 ChipsMedia 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 ChipsMedia i.e., ChipsMedia and FNSTech go up and down completely randomly.
Pair Corralation between ChipsMedia and FNSTech
Assuming the 90 days trading horizon ChipsMedia is expected to generate 1.31 times more return on investment than FNSTech. However, ChipsMedia is 1.31 times more volatile than FNSTech Co. It trades about 0.05 of its potential returns per unit of risk. FNSTech Co is currently generating about 0.02 per unit of risk. If you would invest 767,409 in ChipsMedia on September 2, 2024 and sell it today you would earn a total of 589,591 from holding ChipsMedia or generate 76.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
ChipsMedia vs. FNSTech Co
Performance |
| Timeline |
| ChipsMedia |
| FNSTech |
ChipsMedia and FNSTech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ChipsMedia and FNSTech
The main advantage of trading using opposite ChipsMedia and FNSTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ChipsMedia 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.| ChipsMedia vs. Duksan Hi Metal | ChipsMedia vs. Korea Investment Holdings | ChipsMedia vs. Kbi Metal Co | ChipsMedia vs. Daelim Trading Co |
| FNSTech vs. Samsung Electronics Co | FNSTech vs. Samsung Electronics Co | FNSTech vs. LG Energy Solution | FNSTech vs. SK Hynix |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |