Correlation Between Feng Ching and Analog Integrations
Can any of the company-specific risk be diversified away by investing in both Feng Ching and Analog Integrations 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 Feng Ching and Analog Integrations into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Feng Ching Metal and Analog Integrations, you can compare the effects of market volatilities on Feng Ching and Analog Integrations 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 Feng Ching with a short position of Analog Integrations. Check out your portfolio center. Please also check ongoing floating volatility patterns of Feng Ching and Analog Integrations.
Diversification Opportunities for Feng Ching and Analog Integrations
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Feng and Analog is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Feng Ching Metal and Analog Integrations in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Analog Integrations and Feng Ching 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 Feng Ching Metal are associated (or correlated) with Analog Integrations. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Analog Integrations has no effect on the direction of Feng Ching i.e., Feng Ching and Analog Integrations go up and down completely randomly.
Pair Corralation between Feng Ching and Analog Integrations
Assuming the 90 days trading horizon Feng Ching Metal is expected to generate 0.76 times more return on investment than Analog Integrations. However, Feng Ching Metal is 1.32 times less risky than Analog Integrations. It trades about -0.01 of its potential returns per unit of risk. Analog Integrations is currently generating about -0.21 per unit of risk. If you would invest 1,915 in Feng Ching Metal on September 1, 2024 and sell it today you would lose (15.00) from holding Feng Ching Metal or give up 0.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Feng Ching Metal vs. Analog Integrations
Performance |
| Timeline |
| Feng Ching Metal |
| Analog Integrations |
Feng Ching and Analog Integrations Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Feng Ching and Analog Integrations
The main advantage of trading using opposite Feng Ching and Analog Integrations positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Feng Ching position performs unexpectedly, Analog Integrations 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 Analog Integrations will offset losses from the drop in Analog Integrations' long position.| Feng Ching vs. Intai Technology | Feng Ching vs. Microtips Technology | Feng Ching vs. Maxigen Biotech | Feng Ching vs. V Tac Technology Co |
| Analog Integrations vs. Winstek Semiconductor Co | Analog Integrations vs. Kindom Construction Corp | Analog Integrations vs. WiseChip Semiconductor | Analog Integrations vs. Davicom Semiconductor |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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