Correlation Between Wireless Power and Finetechnix CoLtd
Can any of the company-specific risk be diversified away by investing in both Wireless Power and Finetechnix CoLtd 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 Wireless Power and Finetechnix CoLtd into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wireless Power Amplifier and Finetechnix CoLtd, you can compare the effects of market volatilities on Wireless Power and Finetechnix CoLtd 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 Wireless Power with a short position of Finetechnix CoLtd. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wireless Power and Finetechnix CoLtd.
Diversification Opportunities for Wireless Power and Finetechnix CoLtd
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Wireless and Finetechnix is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Wireless Power Amplifier and Finetechnix CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Finetechnix CoLtd and Wireless Power 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 Wireless Power Amplifier are associated (or correlated) with Finetechnix CoLtd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Finetechnix CoLtd has no effect on the direction of Wireless Power i.e., Wireless Power and Finetechnix CoLtd go up and down completely randomly.
Pair Corralation between Wireless Power and Finetechnix CoLtd
Assuming the 90 days trading horizon Wireless Power Amplifier is expected to generate 1.58 times more return on investment than Finetechnix CoLtd. However, Wireless Power is 1.58 times more volatile than Finetechnix CoLtd. It trades about 0.0 of its potential returns per unit of risk. Finetechnix CoLtd is currently generating about -0.1 per unit of risk. If you would invest 259,500 in Wireless Power Amplifier on August 29, 2024 and sell it today you would lose (38,500) from holding Wireless Power Amplifier or give up 14.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wireless Power Amplifier vs. Finetechnix CoLtd
Performance |
| Timeline |
| Wireless Power Amplifier |
| Finetechnix CoLtd |
Wireless Power and Finetechnix CoLtd Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wireless Power and Finetechnix CoLtd
The main advantage of trading using opposite Wireless Power and Finetechnix CoLtd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wireless Power position performs unexpectedly, Finetechnix CoLtd 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 Finetechnix CoLtd will offset losses from the drop in Finetechnix CoLtd's long position.| Wireless Power vs. Daejoo Electronic Materials | Wireless Power vs. Parksystems Corp | Wireless Power vs. BH Co | Wireless Power vs. Partron Co |
| Finetechnix CoLtd vs. T3 Entertainment Co | Finetechnix CoLtd vs. MediaZen | Finetechnix CoLtd vs. Wireless Power Amplifier | Finetechnix CoLtd vs. Kakao Games 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |