Correlation Between Chang Type and Inmax Holding
Can any of the company-specific risk be diversified away by investing in both Chang Type and Inmax Holding 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 Chang Type and Inmax Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chang Type Industrial and Inmax Holding Co, you can compare the effects of market volatilities on Chang Type and Inmax Holding 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 Chang Type with a short position of Inmax Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chang Type and Inmax Holding.
Diversification Opportunities for Chang Type and Inmax Holding
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Chang and Inmax is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Chang Type Industrial and Inmax Holding Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inmax Holding and Chang Type 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 Chang Type Industrial are associated (or correlated) with Inmax Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inmax Holding has no effect on the direction of Chang Type i.e., Chang Type and Inmax Holding go up and down completely randomly.
Pair Corralation between Chang Type and Inmax Holding
Assuming the 90 days trading horizon Chang Type Industrial is expected to generate 0.89 times more return on investment than Inmax Holding. However, Chang Type Industrial is 1.13 times less risky than Inmax Holding. It trades about -0.11 of its potential returns per unit of risk. Inmax Holding Co is currently generating about -0.29 per unit of risk. If you would invest 2,720 in Chang Type Industrial on October 21, 2024 and sell it today you would lose (140.00) from holding Chang Type Industrial or give up 5.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chang Type Industrial vs. Inmax Holding Co
Performance |
| Timeline |
| Chang Type Industrial |
| Inmax Holding |
Chang Type and Inmax Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chang Type and Inmax Holding
The main advantage of trading using opposite Chang Type and Inmax Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chang Type position performs unexpectedly, Inmax Holding 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 Inmax Holding will offset losses from the drop in Inmax Holding's long position.| Chang Type vs. Carnival Industrial Corp | Chang Type vs. De Licacy Industrial | Chang Type vs. Tex Ray Industrial Co | Chang Type vs. Reward Wool Industry |
| Inmax Holding vs. Mosa Industrial Corp | Inmax Holding vs. TBI Motion Technology | Inmax Holding vs. Chang Type Industrial | Inmax Holding vs. Sun Race Sturmey Archer |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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