Correlation Between Inmax Holding and QST International
Can any of the company-specific risk be diversified away by investing in both Inmax Holding and QST International 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 QST International 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 QST International, you can compare the effects of market volatilities on Inmax Holding and QST International 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 QST International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inmax Holding and QST International.
Diversification Opportunities for Inmax Holding and QST International
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Inmax and QST is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Inmax Holding Co and QST International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on QST International 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 QST International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of QST International has no effect on the direction of Inmax Holding i.e., Inmax Holding and QST International go up and down completely randomly.
Pair Corralation between Inmax Holding and QST International
Assuming the 90 days trading horizon Inmax Holding Co is expected to generate 5.13 times more return on investment than QST International. However, Inmax Holding is 5.13 times more volatile than QST International. It trades about 0.18 of its potential returns per unit of risk. QST International is currently generating about -0.26 per unit of risk. If you would invest 4,580 in Inmax Holding Co on September 2, 2024 and sell it today you would earn a total of 780.00 from holding Inmax Holding Co or generate 17.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inmax Holding Co vs. QST International
Performance |
| Timeline |
| Inmax Holding |
| QST International |
Inmax Holding and QST International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inmax Holding and QST International
The main advantage of trading using opposite Inmax Holding and QST International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inmax Holding position performs unexpectedly, QST International 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 QST International will offset losses from the drop in QST International's long position.| Inmax Holding vs. Ton Yi Industrial | Inmax Holding vs. Hannstar Display Corp | Inmax Holding vs. U Media Communications | Inmax Holding vs. Tex Ray Industrial Co |
| QST International vs. BES Engineering Co | QST International vs. Continental Holdings Corp | QST International vs. Kee Tai Properties | QST International 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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