Correlation Between PH Tech and I Components
Can any of the company-specific risk be diversified away by investing in both PH Tech and I Components 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 PH Tech and I Components into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PH Tech Co and i Components Co, you can compare the effects of market volatilities on PH Tech and I Components 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 PH Tech with a short position of I Components. Check out your portfolio center. Please also check ongoing floating volatility patterns of PH Tech and I Components.
Diversification Opportunities for PH Tech and I Components
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 239890 and 059100 is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding PH Tech Co and i Components Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on i Components and PH Tech 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 PH Tech Co are associated (or correlated) with I Components. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of i Components has no effect on the direction of PH Tech i.e., PH Tech and I Components go up and down completely randomly.
Pair Corralation between PH Tech and I Components
Assuming the 90 days trading horizon PH Tech Co is expected to under-perform the I Components. In addition to that, PH Tech is 1.16 times more volatile than i Components Co. It trades about -0.01 of its total potential returns per unit of risk. i Components Co is currently generating about -0.01 per unit of volatility. If you would invest 797,000 in i Components Co on October 14, 2024 and sell it today you would lose (259,000) from holding i Components Co or give up 32.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PH Tech Co vs. i Components Co
Performance |
| Timeline |
| PH Tech |
| i Components |
PH Tech and I Components Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PH Tech and I Components
The main advantage of trading using opposite PH Tech and I Components positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PH Tech position performs unexpectedly, I Components 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 I Components will offset losses from the drop in I Components' long position.| PH Tech vs. Daeduck Electronics Co | PH Tech vs. Narae Nanotech Corp | PH Tech vs. SEOWONINTECHCoLtd | PH Tech vs. KMH Hitech Co |
| I Components vs. FNSTech Co | I Components vs. PH Tech Co | I Components vs. PLAYWITH | I Components vs. Woori Technology |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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