Correlation Between Intai Technology and San Shing
Can any of the company-specific risk be diversified away by investing in both Intai Technology and San Shing 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 San Shing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intai Technology and San Shing Fastech, you can compare the effects of market volatilities on Intai Technology and San Shing 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 San Shing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intai Technology and San Shing.
Diversification Opportunities for Intai Technology and San Shing
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Intai and San is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Intai Technology and San Shing Fastech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on San Shing Fastech 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 San Shing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of San Shing Fastech has no effect on the direction of Intai Technology i.e., Intai Technology and San Shing go up and down completely randomly.
Pair Corralation between Intai Technology and San Shing
Assuming the 90 days trading horizon Intai Technology is expected to under-perform the San Shing. In addition to that, Intai Technology is 1.03 times more volatile than San Shing Fastech. It trades about -0.02 of its total potential returns per unit of risk. San Shing Fastech is currently generating about -0.02 per unit of volatility. If you would invest 5,550 in San Shing Fastech on September 3, 2024 and sell it today you would lose (20.00) from holding San Shing Fastech or give up 0.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intai Technology vs. San Shing Fastech
Performance |
| Timeline |
| Intai Technology |
| San Shing Fastech |
Intai Technology and San Shing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intai Technology and San Shing
The main advantage of trading using opposite Intai Technology and San Shing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intai Technology position performs unexpectedly, San Shing 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 San Shing will offset losses from the drop in San Shing's long position.| Intai Technology vs. San Shing Fastech | Intai Technology vs. QST International | Intai Technology vs. WiseChip Semiconductor | Intai Technology vs. Novatek Microelectronics Corp |
| San Shing vs. Topco Scientific Co | San Shing vs. WPG Holdings | San Shing vs. Charoen Pokphand Enterprise | San Shing vs. Merida Industry 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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