Correlation Between Coremax Corp and Ingentec
Can any of the company-specific risk be diversified away by investing in both Coremax Corp and Ingentec 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 Coremax Corp and Ingentec into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coremax Corp and Ingentec, you can compare the effects of market volatilities on Coremax Corp and Ingentec 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 Coremax Corp with a short position of Ingentec. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coremax Corp and Ingentec.
Diversification Opportunities for Coremax Corp and Ingentec
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Coremax and Ingentec is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Coremax Corp and Ingentec in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ingentec and Coremax 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 Coremax Corp are associated (or correlated) with Ingentec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ingentec has no effect on the direction of Coremax Corp i.e., Coremax Corp and Ingentec go up and down completely randomly.
Pair Corralation between Coremax Corp and Ingentec
Assuming the 90 days trading horizon Coremax Corp is expected to generate 0.81 times more return on investment than Ingentec. However, Coremax Corp is 1.23 times less risky than Ingentec. It trades about 0.17 of its potential returns per unit of risk. Ingentec is currently generating about -0.19 per unit of risk. If you would invest 5,930 in Coremax Corp on September 13, 2024 and sell it today you would earn a total of 400.00 from holding Coremax Corp or generate 6.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Coremax Corp vs. Ingentec
Performance |
| Timeline |
| Coremax Corp |
| Ingentec |
Coremax Corp and Ingentec Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coremax Corp and Ingentec
The main advantage of trading using opposite Coremax Corp and Ingentec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coremax Corp position performs unexpectedly, Ingentec 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 Ingentec will offset losses from the drop in Ingentec's long position.| Coremax Corp vs. Mechema Chemicals Int | Coremax Corp vs. China Steel Chemical | Coremax Corp vs. Delta Electronics | Coremax Corp vs. Hota Industrial Mfg |
| Ingentec vs. Medigen Biotechnology | Ingentec vs. Feng Hsin Steel | Ingentec vs. Century Iron And | Ingentec vs. Yieh United Steel |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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