Correlation Between Innolux Corp and In Win
Can any of the company-specific risk be diversified away by investing in both Innolux Corp and In Win 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 In Win into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Innolux Corp and In Win Development, you can compare the effects of market volatilities on Innolux Corp and In Win 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 In Win. Check out your portfolio center. Please also check ongoing floating volatility patterns of Innolux Corp and In Win.
Diversification Opportunities for Innolux Corp and In Win
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Innolux and 6117 is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Innolux Corp and In Win Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on In Win Development 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 In Win. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of In Win Development has no effect on the direction of Innolux Corp i.e., Innolux Corp and In Win go up and down completely randomly.
Pair Corralation between Innolux Corp and In Win
Assuming the 90 days trading horizon Innolux Corp is expected to generate 0.47 times more return on investment than In Win. However, Innolux Corp is 2.14 times less risky than In Win. It trades about -0.05 of its potential returns per unit of risk. In Win Development is currently generating about -0.03 per unit of risk. If you would invest 1,585 in Innolux Corp on September 12, 2024 and sell it today you would lose (30.00) from holding Innolux Corp or give up 1.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Innolux Corp vs. In Win Development
Performance |
| Timeline |
| Innolux Corp |
| In Win Development |
Innolux Corp and In Win Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Innolux Corp and In Win
The main advantage of trading using opposite Innolux Corp and In Win positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Innolux Corp position performs unexpectedly, In Win 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 In Win will offset losses from the drop in In Win'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 |
| In Win vs. AU Optronics | In Win vs. Innolux Corp | In Win vs. Ruentex Development Co | In Win 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |