Correlation Between IEI Integration and Wiwynn Corp
Can any of the company-specific risk be diversified away by investing in both IEI Integration and Wiwynn Corp 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 Wiwynn Corp 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 Wiwynn Corp, you can compare the effects of market volatilities on IEI Integration and Wiwynn Corp 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 Wiwynn Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of IEI Integration and Wiwynn Corp.
Diversification Opportunities for IEI Integration and Wiwynn Corp
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between IEI and Wiwynn is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding IEI Integration Corp and Wiwynn Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wiwynn Corp 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 Wiwynn Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wiwynn Corp has no effect on the direction of IEI Integration i.e., IEI Integration and Wiwynn Corp go up and down completely randomly.
Pair Corralation between IEI Integration and Wiwynn Corp
Assuming the 90 days trading horizon IEI Integration Corp is expected to under-perform the Wiwynn Corp. But the stock apears to be less risky and, when comparing its historical volatility, IEI Integration Corp is 1.86 times less risky than Wiwynn Corp. The stock trades about -0.01 of its potential returns per unit of risk. The Wiwynn Corp is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 149,500 in Wiwynn Corp on August 28, 2024 and sell it today you would earn a total of 70,500 from holding Wiwynn Corp or generate 47.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
IEI Integration Corp vs. Wiwynn Corp
Performance |
| Timeline |
| IEI Integration Corp |
| Wiwynn Corp |
IEI Integration and Wiwynn Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IEI Integration and Wiwynn Corp
The main advantage of trading using opposite IEI Integration and Wiwynn Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IEI Integration position performs unexpectedly, Wiwynn Corp 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 Wiwynn Corp will offset losses from the drop in Wiwynn Corp'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 |
| Wiwynn Corp vs. Quanta Computer | Wiwynn Corp vs. Getac Technology Corp | Wiwynn Corp vs. IEI Integration Corp | Wiwynn Corp vs. Elitegroup Computer Systems |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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