Correlation Between Promise Technology and In Win
Can any of the company-specific risk be diversified away by investing in both Promise Technology and In Win 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 Promise Technology and In Win into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Promise Technology and In Win Development, you can compare the effects of market volatilities on Promise Technology and In Win 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 Promise Technology with a short position of In Win. Check out your portfolio center. Please also check ongoing floating volatility patterns of Promise Technology and In Win.
Diversification Opportunities for Promise Technology and In Win
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Promise and 6117 is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Promise Technology and In Win Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on In Win Development and Promise Technology 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 Promise Technology are associated (or correlated) with In Win. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of In Win Development has no effect on the direction of Promise Technology i.e., Promise Technology and In Win go up and down completely randomly.
Pair Corralation between Promise Technology and In Win
Assuming the 90 days trading horizon Promise Technology is expected to generate 6.56 times less return on investment than In Win. But when comparing it to its historical volatility, Promise Technology is 2.04 times less risky than In Win. It trades about 0.13 of its potential returns per unit of risk. In Win Development is currently generating about 0.41 of returns per unit of risk over similar time horizon. If you would invest 8,180 in In Win Development on November 28, 2024 and sell it today you would earn a total of 980.00 from holding In Win Development or generate 11.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Promise Technology vs. In Win Development
Performance |
| Timeline |
| Promise Technology |
| In Win Development |
Promise Technology and In Win Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Promise Technology and In Win
The main advantage of trading using opposite Promise Technology and In Win positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Promise Technology position performs unexpectedly, In Win 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 In Win will offset losses from the drop in In Win's long position.| Promise Technology vs. Min Aik Technology | Promise Technology vs. Spirox Corp | Promise Technology vs. Chenming Mold Industrial | Promise Technology vs. Infortrend Technology |
| In Win vs. Promise Technology | In Win vs. Chenming Mold Industrial | In Win vs. Associated Industries China | In Win vs. Min Aik Technology |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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