Correlation Between IEI Integration and Antec
Can any of the company-specific risk be diversified away by investing in both IEI Integration and Antec 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 Antec 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 Antec Inc, you can compare the effects of market volatilities on IEI Integration and Antec 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 Antec. Check out your portfolio center. Please also check ongoing floating volatility patterns of IEI Integration and Antec.
Diversification Opportunities for IEI Integration and Antec
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between IEI and Antec is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding IEI Integration Corp and Antec Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Antec Inc 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 Antec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Antec Inc has no effect on the direction of IEI Integration i.e., IEI Integration and Antec go up and down completely randomly.
Pair Corralation between IEI Integration and Antec
Assuming the 90 days trading horizon IEI Integration Corp is expected to generate 1.34 times more return on investment than Antec. However, IEI Integration is 1.34 times more volatile than Antec Inc. It trades about 0.16 of its potential returns per unit of risk. Antec Inc is currently generating about -0.45 per unit of risk. If you would invest 7,810 in IEI Integration Corp on August 29, 2024 and sell it today you would earn a total of 550.00 from holding IEI Integration Corp or generate 7.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
IEI Integration Corp vs. Antec Inc
Performance |
| Timeline |
| IEI Integration Corp |
| Antec Inc |
IEI Integration and Antec Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IEI Integration and Antec
The main advantage of trading using opposite IEI Integration and Antec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IEI Integration position performs unexpectedly, Antec 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 Antec will offset losses from the drop in Antec'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 |
| Antec vs. AVer Information | Antec vs. Dimerco Data System | Antec vs. U Media Communications | Antec vs. Otsuka Information 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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