Correlation Between Innolux Corp and Synnex Technology
Can any of the company-specific risk be diversified away by investing in both Innolux Corp and Synnex Technology 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 Innolux Corp and Synnex Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Innolux Corp and Synnex Technology International, you can compare the effects of market volatilities on Innolux Corp and Synnex Technology 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 Innolux Corp with a short position of Synnex Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Innolux Corp and Synnex Technology.
Diversification Opportunities for Innolux Corp and Synnex Technology
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Innolux and Synnex is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Innolux Corp and Synnex Technology Internationa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Synnex Technology and Innolux Corp 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 Innolux Corp are associated (or correlated) with Synnex Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Synnex Technology has no effect on the direction of Innolux Corp i.e., Innolux Corp and Synnex Technology go up and down completely randomly.
Pair Corralation between Innolux Corp and Synnex Technology
Assuming the 90 days trading horizon Innolux Corp is expected to generate 2.26 times less return on investment than Synnex Technology. In addition to that, Innolux Corp is 1.65 times more volatile than Synnex Technology International. It trades about 0.01 of its total potential returns per unit of risk. Synnex Technology International is currently generating about 0.05 per unit of volatility. If you would invest 5,970 in Synnex Technology International on September 12, 2024 and sell it today you would earn a total of 1,430 from holding Synnex Technology International or generate 23.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Innolux Corp vs. Synnex Technology Internationa
Performance |
| Timeline |
| Innolux Corp |
| Synnex Technology |
Innolux Corp and Synnex Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Innolux Corp and Synnex Technology
The main advantage of trading using opposite Innolux Corp and Synnex Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Innolux Corp position performs unexpectedly, Synnex Technology 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 Synnex Technology will offset losses from the drop in Synnex Technology's long position.| Innolux Corp vs. AU Optronics | Innolux Corp vs. Ruentex Development Co | Innolux Corp vs. WiseChip Semiconductor | Innolux Corp vs. Novatek Microelectronics Corp |
| Synnex Technology vs. AU Optronics | Synnex Technology vs. Innolux Corp | Synnex Technology vs. Ruentex Development Co | Synnex Technology vs. WiseChip Semiconductor |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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