Correlation Between Ingentec and Asmedia Technology
Can any of the company-specific risk be diversified away by investing in both Ingentec and Asmedia Technology 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 Ingentec and Asmedia Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ingentec and Asmedia Technology, you can compare the effects of market volatilities on Ingentec and Asmedia Technology 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 Ingentec with a short position of Asmedia Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ingentec and Asmedia Technology.
Diversification Opportunities for Ingentec and Asmedia Technology
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ingentec and Asmedia is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Ingentec and Asmedia Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asmedia Technology and Ingentec 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 Ingentec are associated (or correlated) with Asmedia Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asmedia Technology has no effect on the direction of Ingentec i.e., Ingentec and Asmedia Technology go up and down completely randomly.
Pair Corralation between Ingentec and Asmedia Technology
Assuming the 90 days trading horizon Ingentec is expected to generate 2.51 times less return on investment than Asmedia Technology. But when comparing it to its historical volatility, Ingentec is 1.22 times less risky than Asmedia Technology. It trades about 0.04 of its potential returns per unit of risk. Asmedia Technology is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 73,866 in Asmedia Technology on September 26, 2024 and sell it today you would earn a total of 126,134 from holding Asmedia Technology or generate 170.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ingentec vs. Asmedia Technology
Performance |
| Timeline |
| Ingentec |
| Asmedia Technology |
Ingentec and Asmedia Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ingentec and Asmedia Technology
The main advantage of trading using opposite Ingentec and Asmedia Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ingentec position performs unexpectedly, Asmedia Technology 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 Asmedia Technology will offset losses from the drop in Asmedia Technology's long position.| Ingentec vs. Nan Ya Plastics | Ingentec vs. China Petrochemical Development | Ingentec vs. Eternal Materials Co | Ingentec vs. TSRC Corp |
| Asmedia Technology vs. Century Wind Power | Asmedia Technology vs. Green World Fintech | Asmedia Technology vs. Ingentec | Asmedia Technology vs. Chaheng Precision 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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