Correlation Between Innometry and SOOSAN INT
Can any of the company-specific risk be diversified away by investing in both Innometry and SOOSAN INT 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 Innometry and SOOSAN INT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Innometry Co and SOOSAN INT Co, you can compare the effects of market volatilities on Innometry and SOOSAN INT 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 Innometry with a short position of SOOSAN INT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Innometry and SOOSAN INT.
Diversification Opportunities for Innometry and SOOSAN INT
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Innometry and SOOSAN is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Innometry Co and SOOSAN INT Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SOOSAN INT and Innometry 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 Innometry Co are associated (or correlated) with SOOSAN INT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SOOSAN INT has no effect on the direction of Innometry i.e., Innometry and SOOSAN INT go up and down completely randomly.
Pair Corralation between Innometry and SOOSAN INT
Assuming the 90 days trading horizon Innometry Co is expected to generate 1.06 times more return on investment than SOOSAN INT. However, Innometry is 1.06 times more volatile than SOOSAN INT Co. It trades about -0.22 of its potential returns per unit of risk. SOOSAN INT Co is currently generating about -0.27 per unit of risk. If you would invest 906,000 in Innometry Co on August 31, 2024 and sell it today you would lose (104,000) from holding Innometry Co or give up 11.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Innometry Co vs. SOOSAN INT Co
Performance |
| Timeline |
| Innometry |
| SOOSAN INT |
Innometry and SOOSAN INT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Innometry and SOOSAN INT
The main advantage of trading using opposite Innometry and SOOSAN INT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Innometry position performs unexpectedly, SOOSAN INT 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 SOOSAN INT will offset losses from the drop in SOOSAN INT's long position.| Innometry vs. Daejoo Electronic Materials | Innometry vs. Parksystems Corp | Innometry vs. BH Co | Innometry vs. Partron Co |
| SOOSAN INT vs. Cots Technology Co | SOOSAN INT vs. Lion Chemtech Co | SOOSAN INT vs. A Tech Solution Co | SOOSAN INT vs. Pureun Mutual Savings |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |