Correlation Between Raontech and ITM Semiconductor
Can any of the company-specific risk be diversified away by investing in both Raontech and ITM Semiconductor 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 Raontech and ITM Semiconductor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Raontech and ITM Semiconductor Co, you can compare the effects of market volatilities on Raontech and ITM Semiconductor 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 Raontech with a short position of ITM Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Raontech and ITM Semiconductor.
Diversification Opportunities for Raontech and ITM Semiconductor
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Raontech and ITM is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Raontech and ITM Semiconductor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ITM Semiconductor and Raontech 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 Raontech are associated (or correlated) with ITM Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ITM Semiconductor has no effect on the direction of Raontech i.e., Raontech and ITM Semiconductor go up and down completely randomly.
Pair Corralation between Raontech and ITM Semiconductor
Assuming the 90 days trading horizon Raontech is expected to generate 1.38 times more return on investment than ITM Semiconductor. However, Raontech is 1.38 times more volatile than ITM Semiconductor Co. It trades about 0.0 of its potential returns per unit of risk. ITM Semiconductor Co is currently generating about -0.04 per unit of risk. If you would invest 542,000 in Raontech on October 16, 2024 and sell it today you would lose (166,000) from holding Raontech or give up 30.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.26% |
| Values | Daily Returns |
Raontech vs. ITM Semiconductor Co
Performance |
| Timeline |
| Raontech |
| ITM Semiconductor |
Raontech and ITM Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Raontech and ITM Semiconductor
The main advantage of trading using opposite Raontech and ITM Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Raontech position performs unexpectedly, ITM Semiconductor 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 ITM Semiconductor will offset losses from the drop in ITM Semiconductor's long position.| Raontech vs. Daiyang Metal Co | Raontech vs. Miwon Chemicals Co | Raontech vs. DONGKUK TED METAL | Raontech vs. Taegu Broadcasting |
| ITM Semiconductor vs. LG Display Co | ITM Semiconductor vs. Playgram Co | ITM Semiconductor vs. Raontech | ITM Semiconductor vs. Amogreentech 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |