Correlation Between INNOX Advanced and FNSTech
Can any of the company-specific risk be diversified away by investing in both INNOX Advanced and FNSTech 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 INNOX Advanced and FNSTech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between INNOX Advanced Materials and FNSTech Co, you can compare the effects of market volatilities on INNOX Advanced and FNSTech 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 INNOX Advanced with a short position of FNSTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of INNOX Advanced and FNSTech.
Diversification Opportunities for INNOX Advanced and FNSTech
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between INNOX and FNSTech is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding INNOX Advanced Materials and FNSTech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FNSTech and INNOX Advanced 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 INNOX Advanced Materials are associated (or correlated) with FNSTech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FNSTech has no effect on the direction of INNOX Advanced i.e., INNOX Advanced and FNSTech go up and down completely randomly.
Pair Corralation between INNOX Advanced and FNSTech
Assuming the 90 days trading horizon INNOX Advanced Materials is expected to generate 0.79 times more return on investment than FNSTech. However, INNOX Advanced Materials is 1.26 times less risky than FNSTech. It trades about 0.51 of its potential returns per unit of risk. FNSTech Co is currently generating about 0.4 per unit of risk. If you would invest 2,010,000 in INNOX Advanced Materials on October 28, 2024 and sell it today you would earn a total of 765,000 from holding INNOX Advanced Materials or generate 38.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
INNOX Advanced Materials vs. FNSTech Co
Performance |
| Timeline |
| INNOX Advanced Materials |
| FNSTech |
INNOX Advanced and FNSTech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INNOX Advanced and FNSTech
The main advantage of trading using opposite INNOX Advanced and FNSTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INNOX Advanced position performs unexpectedly, FNSTech 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 FNSTech will offset losses from the drop in FNSTech's long position.| INNOX Advanced vs. SK Hynix | INNOX Advanced vs. LX Semicon Co | INNOX Advanced vs. Tokai Carbon Korea | INNOX Advanced vs. People Technology |
| FNSTech vs. Samsung Electronics Co | FNSTech vs. Samsung Electronics Co | FNSTech vs. LG Energy Solution | FNSTech 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |