Correlation Between Holy Stone and IEI Integration
Can any of the company-specific risk be diversified away by investing in both Holy Stone and IEI Integration 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 Holy Stone and IEI Integration into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Holy Stone Enterprise and IEI Integration Corp, you can compare the effects of market volatilities on Holy Stone and IEI Integration 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 Holy Stone with a short position of IEI Integration. Check out your portfolio center. Please also check ongoing floating volatility patterns of Holy Stone and IEI Integration.
Diversification Opportunities for Holy Stone and IEI Integration
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Holy and IEI is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Holy Stone Enterprise and IEI Integration Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IEI Integration Corp and Holy Stone 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 Holy Stone Enterprise are associated (or correlated) with IEI Integration. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IEI Integration Corp has no effect on the direction of Holy Stone i.e., Holy Stone and IEI Integration go up and down completely randomly.
Pair Corralation between Holy Stone and IEI Integration
Assuming the 90 days trading horizon Holy Stone Enterprise is expected to under-perform the IEI Integration. But the stock apears to be less risky and, when comparing its historical volatility, Holy Stone Enterprise is 2.18 times less risky than IEI Integration. The stock trades about -0.01 of its potential returns per unit of risk. The IEI Integration Corp is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 7,370 in IEI Integration Corp on October 9, 2024 and sell it today you would earn a total of 680.00 from holding IEI Integration Corp or generate 9.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Holy Stone Enterprise vs. IEI Integration Corp
Performance |
| Timeline |
| Holy Stone Enterprise |
| IEI Integration Corp |
Holy Stone and IEI Integration Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Holy Stone and IEI Integration
The main advantage of trading using opposite Holy Stone and IEI Integration positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Holy Stone position performs unexpectedly, IEI Integration 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 IEI Integration will offset losses from the drop in IEI Integration's long position.| Holy Stone vs. Walsin Technology Corp | Holy Stone vs. Yageo Corp | Holy Stone vs. Tripod Technology Corp | Holy Stone vs. Asia Optical Co |
| IEI Integration vs. Holy Stone Enterprise | IEI Integration vs. Walsin Technology Corp | IEI Integration vs. Yageo Corp | IEI Integration vs. HannStar Board 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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