Correlation Between Inmax Holding and Chiu Ting
Can any of the company-specific risk be diversified away by investing in both Inmax Holding and Chiu Ting 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 Inmax Holding and Chiu Ting into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inmax Holding Co and Chiu Ting Machinery, you can compare the effects of market volatilities on Inmax Holding and Chiu Ting 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 Inmax Holding with a short position of Chiu Ting. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inmax Holding and Chiu Ting.
Diversification Opportunities for Inmax Holding and Chiu Ting
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Inmax and Chiu is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Inmax Holding Co and Chiu Ting Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chiu Ting Machinery and Inmax Holding 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 Inmax Holding Co are associated (or correlated) with Chiu Ting. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chiu Ting Machinery has no effect on the direction of Inmax Holding i.e., Inmax Holding and Chiu Ting go up and down completely randomly.
Pair Corralation between Inmax Holding and Chiu Ting
Assuming the 90 days trading horizon Inmax Holding Co is expected to generate 2.46 times more return on investment than Chiu Ting. However, Inmax Holding is 2.46 times more volatile than Chiu Ting Machinery. It trades about 0.2 of its potential returns per unit of risk. Chiu Ting Machinery is currently generating about -0.29 per unit of risk. If you would invest 4,165 in Inmax Holding Co on August 31, 2024 and sell it today you would earn a total of 820.00 from holding Inmax Holding Co or generate 19.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inmax Holding Co vs. Chiu Ting Machinery
Performance |
| Timeline |
| Inmax Holding |
| Chiu Ting Machinery |
Inmax Holding and Chiu Ting Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inmax Holding and Chiu Ting
The main advantage of trading using opposite Inmax Holding and Chiu Ting positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inmax Holding position performs unexpectedly, Chiu Ting 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 Chiu Ting will offset losses from the drop in Chiu Ting's long position.| Inmax Holding vs. Gamania Digital Entertainment | Inmax Holding vs. X Legend Entertainment Co | Inmax Holding vs. Chi Sheng Chemical | Inmax Holding vs. Acelon Chemicals Fiber |
| Chiu Ting vs. BES Engineering Co | Chiu Ting vs. Continental Holdings Corp | Chiu Ting vs. Kee Tai Properties | Chiu Ting vs. Hung Sheng Construction |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |