Correlation Between Intellian Technologies and TOPMATERIAL
Can any of the company-specific risk be diversified away by investing in both Intellian Technologies and TOPMATERIAL 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 Intellian Technologies and TOPMATERIAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intellian Technologies and TOPMATERIAL LTD, you can compare the effects of market volatilities on Intellian Technologies and TOPMATERIAL 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 Intellian Technologies with a short position of TOPMATERIAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intellian Technologies and TOPMATERIAL.
Diversification Opportunities for Intellian Technologies and TOPMATERIAL
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Intellian and TOPMATERIAL is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Intellian Technologies and TOPMATERIAL LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TOPMATERIAL LTD and Intellian Technologies 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 Intellian Technologies are associated (or correlated) with TOPMATERIAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TOPMATERIAL LTD has no effect on the direction of Intellian Technologies i.e., Intellian Technologies and TOPMATERIAL go up and down completely randomly.
Pair Corralation between Intellian Technologies and TOPMATERIAL
Assuming the 90 days trading horizon Intellian Technologies is expected to under-perform the TOPMATERIAL. In addition to that, Intellian Technologies is 1.31 times more volatile than TOPMATERIAL LTD. It trades about -0.18 of its total potential returns per unit of risk. TOPMATERIAL LTD is currently generating about -0.13 per unit of volatility. If you would invest 3,515,000 in TOPMATERIAL LTD on August 28, 2024 and sell it today you would lose (340,000) from holding TOPMATERIAL LTD or give up 9.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intellian Technologies vs. TOPMATERIAL LTD
Performance |
| Timeline |
| Intellian Technologies |
| TOPMATERIAL LTD |
Intellian Technologies and TOPMATERIAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intellian Technologies and TOPMATERIAL
The main advantage of trading using opposite Intellian Technologies and TOPMATERIAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intellian Technologies position performs unexpectedly, TOPMATERIAL 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 TOPMATERIAL will offset losses from the drop in TOPMATERIAL's long position.| Intellian Technologies vs. Korea Real Estate | Intellian Technologies vs. Korea Ratings Co | Intellian Technologies vs. IQuest Co | Intellian Technologies vs. Wonbang Tech Co |
| TOPMATERIAL vs. Samsung Electronics Co | TOPMATERIAL vs. Samsung Electronics Co | TOPMATERIAL vs. LG Energy Solution | TOPMATERIAL 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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