Correlation Between WT Microelectronics and Ingentec
Can any of the company-specific risk be diversified away by investing in both WT Microelectronics and Ingentec 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 WT Microelectronics and Ingentec into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WT Microelectronics Co and Ingentec, you can compare the effects of market volatilities on WT Microelectronics and Ingentec 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 WT Microelectronics with a short position of Ingentec. Check out your portfolio center. Please also check ongoing floating volatility patterns of WT Microelectronics and Ingentec.
Diversification Opportunities for WT Microelectronics and Ingentec
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between 3036A and Ingentec is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding WT Microelectronics Co and Ingentec in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ingentec and WT Microelectronics 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 WT Microelectronics Co are associated (or correlated) with Ingentec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ingentec has no effect on the direction of WT Microelectronics i.e., WT Microelectronics and Ingentec go up and down completely randomly.
Pair Corralation between WT Microelectronics and Ingentec
Assuming the 90 days trading horizon WT Microelectronics Co is expected to generate 0.06 times more return on investment than Ingentec. However, WT Microelectronics Co is 17.52 times less risky than Ingentec. It trades about 0.07 of its potential returns per unit of risk. Ingentec is currently generating about -0.08 per unit of risk. If you would invest 5,050 in WT Microelectronics Co on December 10, 2024 and sell it today you would earn a total of 10.00 from holding WT Microelectronics Co or generate 0.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
WT Microelectronics Co vs. Ingentec
Performance |
| Timeline |
| WT Microelectronics |
| Ingentec |
WT Microelectronics and Ingentec Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WT Microelectronics and Ingentec
The main advantage of trading using opposite WT Microelectronics and Ingentec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WT Microelectronics position performs unexpectedly, Ingentec 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 Ingentec will offset losses from the drop in Ingentec's long position.| WT Microelectronics vs. Cheng Mei Materials | WT Microelectronics vs. Chunghwa Telecom Co | WT Microelectronics vs. WinMate Communication INC | WT Microelectronics vs. Chinese Maritime Transport |
| Ingentec vs. China General Plastics | Ingentec vs. Far EasTone Telecommunications | Ingentec vs. Taiwan Mobile Co | Ingentec vs. Arima Communications 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |