Correlation Between U Tech and Ibase Gaming
Can any of the company-specific risk be diversified away by investing in both U Tech and Ibase Gaming 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 U Tech and Ibase Gaming into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between U Tech Media Corp and Ibase Gaming, you can compare the effects of market volatilities on U Tech and Ibase Gaming 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 U Tech with a short position of Ibase Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of U Tech and Ibase Gaming.
Diversification Opportunities for U Tech and Ibase Gaming
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between 3050 and Ibase is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding U Tech Media Corp and Ibase Gaming in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ibase Gaming and U Tech 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 U Tech Media Corp are associated (or correlated) with Ibase Gaming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ibase Gaming has no effect on the direction of U Tech i.e., U Tech and Ibase Gaming go up and down completely randomly.
Pair Corralation between U Tech and Ibase Gaming
Assuming the 90 days trading horizon U Tech Media Corp is expected to under-perform the Ibase Gaming. But the stock apears to be less risky and, when comparing its historical volatility, U Tech Media Corp is 1.49 times less risky than Ibase Gaming. The stock trades about -0.22 of its potential returns per unit of risk. The Ibase Gaming is currently generating about -0.1 of returns per unit of risk over similar time horizon. If you would invest 3,610 in Ibase Gaming on October 20, 2024 and sell it today you would lose (240.00) from holding Ibase Gaming or give up 6.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
U Tech Media Corp vs. Ibase Gaming
Performance |
| Timeline |
| U Tech Media |
| Ibase Gaming |
U Tech and Ibase Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with U Tech and Ibase Gaming
The main advantage of trading using opposite U Tech and Ibase Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if U Tech position performs unexpectedly, Ibase Gaming 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 Ibase Gaming will offset losses from the drop in Ibase Gaming's long position.| U Tech vs. Asia Optical Co | U Tech vs. HannsTouch Solution | U Tech vs. Optimax Technology Corp | U Tech vs. Bright Led Electronics |
| Ibase Gaming vs. Pili International Multimedia | Ibase Gaming vs. Mobiletron Electronics Co | Ibase Gaming vs. U Media Communications | Ibase Gaming vs. U Tech Media 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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