Correlation Between Innolux Corp and Mercuries Data
Can any of the company-specific risk be diversified away by investing in both Innolux Corp and Mercuries Data 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 Mercuries Data into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Innolux Corp and Mercuries Data Systems, you can compare the effects of market volatilities on Innolux Corp and Mercuries Data 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 Mercuries Data. Check out your portfolio center. Please also check ongoing floating volatility patterns of Innolux Corp and Mercuries Data.
Diversification Opportunities for Innolux Corp and Mercuries Data
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Innolux and Mercuries is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Innolux Corp and Mercuries Data Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mercuries Data Systems 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 Mercuries Data. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mercuries Data Systems has no effect on the direction of Innolux Corp i.e., Innolux Corp and Mercuries Data go up and down completely randomly.
Pair Corralation between Innolux Corp and Mercuries Data
Assuming the 90 days trading horizon Innolux Corp is expected to under-perform the Mercuries Data. But the stock apears to be less risky and, when comparing its historical volatility, Innolux Corp is 1.07 times less risky than Mercuries Data. The stock trades about -0.14 of its potential returns per unit of risk. The Mercuries Data Systems is currently generating about -0.07 of returns per unit of risk over similar time horizon. If you would invest 2,695 in Mercuries Data Systems on October 20, 2024 and sell it today you would lose (95.00) from holding Mercuries Data Systems or give up 3.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Innolux Corp vs. Mercuries Data Systems
Performance |
| Timeline |
| Innolux Corp |
| Mercuries Data Systems |
Innolux Corp and Mercuries Data Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Innolux Corp and Mercuries Data
The main advantage of trading using opposite Innolux Corp and Mercuries Data positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Innolux Corp position performs unexpectedly, Mercuries Data 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 Mercuries Data will offset losses from the drop in Mercuries Data's long position.| Innolux Corp vs. AU Optronics | Innolux Corp vs. China Steel Corp | Innolux Corp vs. Hon Hai Precision | Innolux Corp vs. Delta Electronics |
| Mercuries Data vs. Ichia Technologies | Mercuries Data vs. Gigastorage Corp | Mercuries Data vs. Ability Enterprise Co | Mercuries Data vs. AVerMedia Technologies |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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