Correlation Between Intai Technology and Fulin Plastic
Can any of the company-specific risk be diversified away by investing in both Intai Technology and Fulin Plastic 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 Intai Technology and Fulin Plastic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intai Technology and Fulin Plastic Industry, you can compare the effects of market volatilities on Intai Technology and Fulin Plastic 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 Intai Technology with a short position of Fulin Plastic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intai Technology and Fulin Plastic.
Diversification Opportunities for Intai Technology and Fulin Plastic
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Intai and Fulin is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Intai Technology and Fulin Plastic Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fulin Plastic Industry and Intai Technology 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 Intai Technology are associated (or correlated) with Fulin Plastic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fulin Plastic Industry has no effect on the direction of Intai Technology i.e., Intai Technology and Fulin Plastic go up and down completely randomly.
Pair Corralation between Intai Technology and Fulin Plastic
Assuming the 90 days trading horizon Intai Technology is expected to generate 4.25 times less return on investment than Fulin Plastic. But when comparing it to its historical volatility, Intai Technology is 1.52 times less risky than Fulin Plastic. It trades about 0.05 of its potential returns per unit of risk. Fulin Plastic Industry is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 6,730 in Fulin Plastic Industry on October 25, 2024 and sell it today you would earn a total of 130.00 from holding Fulin Plastic Industry or generate 1.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intai Technology vs. Fulin Plastic Industry
Performance |
| Timeline |
| Intai Technology |
| Fulin Plastic Industry |
Intai Technology and Fulin Plastic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intai Technology and Fulin Plastic
The main advantage of trading using opposite Intai Technology and Fulin Plastic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intai Technology position performs unexpectedly, Fulin Plastic 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 Fulin Plastic will offset losses from the drop in Fulin Plastic's long position.| Intai Technology vs. U Ming Marine Transport | Intai Technology vs. Wonderful Hi Tech Co | Intai Technology vs. Compal Broadband Networks | Intai Technology vs. Simple Mart Retail |
| Fulin Plastic vs. Far Eastern New | Fulin Plastic vs. Eclat Textile Co | Fulin Plastic vs. Ruentex Industries | Fulin Plastic vs. Formosa Taffeta 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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