Correlation Between People Technology and Stic Investments
Can any of the company-specific risk be diversified away by investing in both People Technology and Stic Investments 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 People Technology and Stic Investments into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between People Technology and Stic Investments, you can compare the effects of market volatilities on People Technology and Stic Investments 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 People Technology with a short position of Stic Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of People Technology and Stic Investments.
Diversification Opportunities for People Technology and Stic Investments
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between People and Stic is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding People Technology and Stic Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stic Investments and People 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 People Technology are associated (or correlated) with Stic Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stic Investments has no effect on the direction of People Technology i.e., People Technology and Stic Investments go up and down completely randomly.
Pair Corralation between People Technology and Stic Investments
Assuming the 90 days trading horizon People Technology is expected to generate 2.42 times more return on investment than Stic Investments. However, People Technology is 2.42 times more volatile than Stic Investments. It trades about 0.06 of its potential returns per unit of risk. Stic Investments is currently generating about -0.13 per unit of risk. If you would invest 3,945,000 in People Technology on November 4, 2024 and sell it today you would earn a total of 110,000 from holding People Technology or generate 2.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
People Technology vs. Stic Investments
Performance |
| Timeline |
| People Technology |
| Stic Investments |
People Technology and Stic Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with People Technology and Stic Investments
The main advantage of trading using opposite People Technology and Stic Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if People Technology position performs unexpectedly, Stic Investments 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 Stic Investments will offset losses from the drop in Stic Investments' long position.| People Technology vs. MetaLabs Co | People Technology vs. Duksan Hi Metal | People Technology vs. Miwon Chemical | People Technology vs. Formetal Co |
| Stic Investments vs. Heungkuk Metaltech CoLtd | Stic Investments vs. Daou Data Corp | Stic Investments vs. DONGKUK TED METAL | Stic Investments vs. Jeong Moon Information |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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