Correlation Between IEI Integration and Chialin Precision
Can any of the company-specific risk be diversified away by investing in both IEI Integration and Chialin Precision 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 IEI Integration and Chialin Precision into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IEI Integration Corp and Chialin Precision Industrial, you can compare the effects of market volatilities on IEI Integration and Chialin Precision 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 IEI Integration with a short position of Chialin Precision. Check out your portfolio center. Please also check ongoing floating volatility patterns of IEI Integration and Chialin Precision.
Diversification Opportunities for IEI Integration and Chialin Precision
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between IEI and Chialin is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding IEI Integration Corp and Chialin Precision Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chialin Precision and IEI Integration 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 IEI Integration Corp are associated (or correlated) with Chialin Precision. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chialin Precision has no effect on the direction of IEI Integration i.e., IEI Integration and Chialin Precision go up and down completely randomly.
Pair Corralation between IEI Integration and Chialin Precision
Assuming the 90 days trading horizon IEI Integration Corp is expected to generate 1.66 times more return on investment than Chialin Precision. However, IEI Integration is 1.66 times more volatile than Chialin Precision Industrial. It trades about 0.08 of its potential returns per unit of risk. Chialin Precision Industrial is currently generating about 0.02 per unit of risk. If you would invest 7,620 in IEI Integration Corp on August 30, 2024 and sell it today you would earn a total of 400.00 from holding IEI Integration Corp or generate 5.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
IEI Integration Corp vs. Chialin Precision Industrial
Performance |
| Timeline |
| IEI Integration Corp |
| Chialin Precision |
IEI Integration and Chialin Precision Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IEI Integration and Chialin Precision
The main advantage of trading using opposite IEI Integration and Chialin Precision positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IEI Integration position performs unexpectedly, Chialin Precision 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 Chialin Precision will offset losses from the drop in Chialin Precision's long position.| IEI Integration vs. Advantech Co | IEI Integration vs. Getac Technology Corp | IEI Integration vs. Flytech Technology Co | IEI Integration vs. ADLINK Technology |
| Chialin Precision vs. Hon Hai Precision | Chialin Precision vs. Delta Electronics | Chialin Precision vs. LARGAN Precision Co | Chialin Precision vs. E Ink Holdings |
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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