Correlation Between IEI Integration and Chander Electronics
Can any of the company-specific risk be diversified away by investing in both IEI Integration and Chander Electronics 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 Chander Electronics 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 Chander Electronics Corp, you can compare the effects of market volatilities on IEI Integration and Chander Electronics 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 Chander Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of IEI Integration and Chander Electronics.
Diversification Opportunities for IEI Integration and Chander Electronics
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between IEI and Chander is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding IEI Integration Corp and Chander Electronics Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chander Electronics 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 Chander Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chander Electronics Corp has no effect on the direction of IEI Integration i.e., IEI Integration and Chander Electronics go up and down completely randomly.
Pair Corralation between IEI Integration and Chander Electronics
Assuming the 90 days trading horizon IEI Integration Corp is expected to generate 1.24 times more return on investment than Chander Electronics. However, IEI Integration is 1.24 times more volatile than Chander Electronics Corp. It trades about 0.07 of its potential returns per unit of risk. Chander Electronics Corp is currently generating about -0.07 per unit of risk. If you would invest 7,670 in IEI Integration Corp on September 1, 2024 and sell it today you would earn a total of 230.00 from holding IEI Integration Corp or generate 3.0% 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. Chander Electronics Corp
Performance |
| Timeline |
| IEI Integration Corp |
| Chander Electronics Corp |
IEI Integration and Chander Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IEI Integration and Chander Electronics
The main advantage of trading using opposite IEI Integration and Chander Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IEI Integration position performs unexpectedly, Chander Electronics 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 Chander Electronics will offset losses from the drop in Chander Electronics' long position.| IEI Integration vs. Advantech Co | IEI Integration vs. Getac Technology Corp | IEI Integration vs. Flytech Technology Co | IEI Integration vs. ADLINK Technology |
| Chander Electronics vs. Hon Hai Precision | Chander Electronics vs. Delta Electronics | Chander Electronics vs. LARGAN Precision Co | Chander Electronics vs. Yageo Corp |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |