Correlation Between Lelon Electronics and INPAQ Technology
Can any of the company-specific risk be diversified away by investing in both Lelon Electronics and INPAQ Technology 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 Lelon Electronics and INPAQ Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lelon Electronics Corp and INPAQ Technology Co, you can compare the effects of market volatilities on Lelon Electronics and INPAQ Technology 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 Lelon Electronics with a short position of INPAQ Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lelon Electronics and INPAQ Technology.
Diversification Opportunities for Lelon Electronics and INPAQ Technology
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lelon and INPAQ is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Lelon Electronics Corp and INPAQ Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INPAQ Technology and Lelon Electronics 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 Lelon Electronics Corp are associated (or correlated) with INPAQ Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INPAQ Technology has no effect on the direction of Lelon Electronics i.e., Lelon Electronics and INPAQ Technology go up and down completely randomly.
Pair Corralation between Lelon Electronics and INPAQ Technology
Assuming the 90 days trading horizon Lelon Electronics Corp is expected to generate 0.67 times more return on investment than INPAQ Technology. However, Lelon Electronics Corp is 1.49 times less risky than INPAQ Technology. It trades about 0.04 of its potential returns per unit of risk. INPAQ Technology Co is currently generating about -0.08 per unit of risk. If you would invest 7,520 in Lelon Electronics Corp on August 30, 2024 and sell it today you would earn a total of 150.00 from holding Lelon Electronics Corp or generate 1.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lelon Electronics Corp vs. INPAQ Technology Co
Performance |
| Timeline |
| Lelon Electronics Corp |
| INPAQ Technology |
Lelon Electronics and INPAQ Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lelon Electronics and INPAQ Technology
The main advantage of trading using opposite Lelon Electronics and INPAQ Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lelon Electronics position performs unexpectedly, INPAQ Technology 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 INPAQ Technology will offset losses from the drop in INPAQ Technology's long position.| Lelon Electronics vs. TA I Technology Co | Lelon Electronics vs. Walsin Technology Corp | Lelon Electronics vs. Greatek Electronics | Lelon Electronics vs. Pan Jit International |
| INPAQ Technology vs. Prosperity Dielectrics Co | INPAQ Technology vs. Wafer Works | INPAQ Technology vs. Walsin Technology Corp | INPAQ Technology vs. Holtek 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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