Correlation Between WinMate Communication and Skardin Industrial
Can any of the company-specific risk be diversified away by investing in both WinMate Communication and Skardin Industrial 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 WinMate Communication and Skardin Industrial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WinMate Communication INC and Skardin Industrial, you can compare the effects of market volatilities on WinMate Communication and Skardin Industrial 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 WinMate Communication with a short position of Skardin Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of WinMate Communication and Skardin Industrial.
Diversification Opportunities for WinMate Communication and Skardin Industrial
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between WinMate and Skardin is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding WinMate Communication INC and Skardin Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Skardin Industrial and WinMate Communication 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 WinMate Communication INC are associated (or correlated) with Skardin Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Skardin Industrial has no effect on the direction of WinMate Communication i.e., WinMate Communication and Skardin Industrial go up and down completely randomly.
Pair Corralation between WinMate Communication and Skardin Industrial
Assuming the 90 days trading horizon WinMate Communication INC is expected to generate 0.6 times more return on investment than Skardin Industrial. However, WinMate Communication INC is 1.66 times less risky than Skardin Industrial. It trades about 0.09 of its potential returns per unit of risk. Skardin Industrial is currently generating about 0.05 per unit of risk. If you would invest 8,430 in WinMate Communication INC on October 11, 2024 and sell it today you would earn a total of 8,720 from holding WinMate Communication INC or generate 103.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
WinMate Communication INC vs. Skardin Industrial
Performance |
| Timeline |
| WinMate Communication INC |
| Skardin Industrial |
WinMate Communication and Skardin Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WinMate Communication and Skardin Industrial
The main advantage of trading using opposite WinMate Communication and Skardin Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WinMate Communication position performs unexpectedly, Skardin Industrial 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 Skardin Industrial will offset losses from the drop in Skardin Industrial's long position.| WinMate Communication vs. Advantech Co | WinMate Communication vs. IEI Integration Corp | WinMate Communication vs. Flytech Technology Co | WinMate Communication vs. Ennoconn Corp |
| Skardin Industrial vs. Da Cin Construction Co | Skardin Industrial vs. Kings Town Construction | Skardin Industrial vs. Highwealth Construction Corp | Skardin Industrial vs. WinMate Communication INC |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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