Correlation Between WinMate Communication and I Sheng
Can any of the company-specific risk be diversified away by investing in both WinMate Communication and I Sheng 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 I Sheng 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 I Sheng Electric Wire, you can compare the effects of market volatilities on WinMate Communication and I Sheng 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 I Sheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of WinMate Communication and I Sheng.
Diversification Opportunities for WinMate Communication and I Sheng
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between WinMate and 6115 is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding WinMate Communication INC and I Sheng Electric Wire in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on I Sheng Electric 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 I Sheng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of I Sheng Electric has no effect on the direction of WinMate Communication i.e., WinMate Communication and I Sheng go up and down completely randomly.
Pair Corralation between WinMate Communication and I Sheng
Assuming the 90 days trading horizon WinMate Communication INC is expected to generate 2.2 times more return on investment than I Sheng. However, WinMate Communication is 2.2 times more volatile than I Sheng Electric Wire. It trades about 0.27 of its potential returns per unit of risk. I Sheng Electric Wire is currently generating about -0.05 per unit of risk. If you would invest 13,800 in WinMate Communication INC on September 4, 2024 and sell it today you would earn a total of 1,100 from holding WinMate Communication INC or generate 7.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
WinMate Communication INC vs. I Sheng Electric Wire
Performance |
| Timeline |
| WinMate Communication INC |
| I Sheng Electric |
WinMate Communication and I Sheng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WinMate Communication and I Sheng
The main advantage of trading using opposite WinMate Communication and I Sheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WinMate Communication position performs unexpectedly, I Sheng 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 I Sheng will offset losses from the drop in I Sheng'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 |
| I Sheng vs. Pacific Construction Co | I Sheng vs. Kindom Construction Corp | I Sheng vs. Dawushan Farm Tech | I Sheng vs. Grand Ocean Retail |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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