Correlation Between Innolux Corp and U Tech
Can any of the company-specific risk be diversified away by investing in both Innolux Corp and U Tech 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 U Tech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Innolux Corp and U Tech Media Corp, you can compare the effects of market volatilities on Innolux Corp and U Tech 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 U Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Innolux Corp and U Tech.
Diversification Opportunities for Innolux Corp and U Tech
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Innolux and 3050 is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Innolux Corp and U Tech Media Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on U Tech Media 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 U Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of U Tech Media has no effect on the direction of Innolux Corp i.e., Innolux Corp and U Tech go up and down completely randomly.
Pair Corralation between Innolux Corp and U Tech
Assuming the 90 days trading horizon Innolux Corp is expected to generate 0.94 times more return on investment than U Tech. However, Innolux Corp is 1.07 times less risky than U Tech. It trades about 0.05 of its potential returns per unit of risk. U Tech Media Corp is currently generating about 0.02 per unit of risk. If you would invest 1,071 in Innolux Corp on September 12, 2024 and sell it today you would earn a total of 479.00 from holding Innolux Corp or generate 44.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Innolux Corp vs. U Tech Media Corp
Performance |
| Timeline |
| Innolux Corp |
| U Tech Media |
Innolux Corp and U Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Innolux Corp and U Tech
The main advantage of trading using opposite Innolux Corp and U Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Innolux Corp position performs unexpectedly, U Tech 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 U Tech will offset losses from the drop in U Tech'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 |
| U Tech vs. AU Optronics | U Tech vs. Innolux Corp | U Tech vs. Ruentex Development Co | U Tech 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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