Correlation Between Axiomtek and IEI Integration
Can any of the company-specific risk be diversified away by investing in both Axiomtek 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 Axiomtek and IEI Integration into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Axiomtek Co and IEI Integration Corp, you can compare the effects of market volatilities on Axiomtek 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 Axiomtek with a short position of IEI Integration. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axiomtek and IEI Integration.
Diversification Opportunities for Axiomtek and IEI Integration
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Axiomtek and IEI is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Axiomtek Co 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 Axiomtek 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 Axiomtek Co 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 Axiomtek i.e., Axiomtek and IEI Integration go up and down completely randomly.
Pair Corralation between Axiomtek and IEI Integration
Assuming the 90 days trading horizon Axiomtek Co is expected to generate 1.29 times more return on investment than IEI Integration. However, Axiomtek is 1.29 times more volatile than IEI Integration Corp. It trades about 0.2 of its potential returns per unit of risk. IEI Integration Corp is currently generating about 0.24 per unit of risk. If you would invest 9,930 in Axiomtek Co on August 27, 2024 and sell it today you would earn a total of 1,070 from holding Axiomtek Co or generate 10.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Axiomtek Co vs. IEI Integration Corp
Performance |
| Timeline |
| Axiomtek |
| IEI Integration Corp |
Axiomtek and IEI Integration Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Axiomtek and IEI Integration
The main advantage of trading using opposite Axiomtek and IEI Integration positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axiomtek 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.| Axiomtek vs. Quanta Computer | Axiomtek vs. Wiwynn Corp | Axiomtek vs. Getac Technology Corp | Axiomtek vs. IEI Integration Corp |
| IEI Integration vs. Advantech Co | IEI Integration vs. Getac Technology Corp | IEI Integration vs. Flytech Technology Co | IEI Integration vs. ADLINK 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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