Correlation Between Innolux Corp and Aten International
Can any of the company-specific risk be diversified away by investing in both Innolux Corp and Aten International 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 Aten International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Innolux Corp and Aten International Co, you can compare the effects of market volatilities on Innolux Corp and Aten International 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 Aten International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Innolux Corp and Aten International.
Diversification Opportunities for Innolux Corp and Aten International
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Innolux and Aten is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Innolux Corp and Aten International Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aten International 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 Aten International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aten International has no effect on the direction of Innolux Corp i.e., Innolux Corp and Aten International go up and down completely randomly.
Pair Corralation between Innolux Corp and Aten International
Assuming the 90 days trading horizon Innolux Corp is expected to generate 2.79 times more return on investment than Aten International. However, Innolux Corp is 2.79 times more volatile than Aten International Co. It trades about -0.05 of its potential returns per unit of risk. Aten International Co is currently generating about -0.25 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 | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Innolux Corp vs. Aten International Co
Performance |
| Timeline |
| Innolux Corp |
| Aten International |
Innolux Corp and Aten International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Innolux Corp and Aten International
The main advantage of trading using opposite Innolux Corp and Aten International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Innolux Corp position performs unexpectedly, Aten International 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 Aten International will offset losses from the drop in Aten International'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 |
| Aten International vs. Flytech Technology Co | Aten International vs. Topco Scientific Co | Aten International vs. Chicony Electronics Co | Aten International vs. Advantech Co |
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 Stocks Directory module to find actively traded stocks across global markets.
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