Correlation Between Ingentec and HIM International
Can any of the company-specific risk be diversified away by investing in both Ingentec and HIM International 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 HIM International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ingentec and HIM International Music, you can compare the effects of market volatilities on Ingentec and HIM International 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 HIM International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ingentec and HIM International.
Diversification Opportunities for Ingentec and HIM International
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ingentec and HIM is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Ingentec and HIM International Music in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HIM International Music 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 HIM International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HIM International Music has no effect on the direction of Ingentec i.e., Ingentec and HIM International go up and down completely randomly.
Pair Corralation between Ingentec and HIM International
Assuming the 90 days trading horizon Ingentec is expected to generate 1.74 times more return on investment than HIM International. However, Ingentec is 1.74 times more volatile than HIM International Music. It trades about 0.03 of its potential returns per unit of risk. HIM International Music is currently generating about 0.0 per unit of risk. If you would invest 15,642 in Ingentec on September 2, 2024 and sell it today you would earn a total of 3,758 from holding Ingentec or generate 24.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.73% |
| Values | Daily Returns |
Ingentec vs. HIM International Music
Performance |
| Timeline |
| Ingentec |
| HIM International Music |
Ingentec and HIM International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ingentec and HIM International
The main advantage of trading using opposite Ingentec and HIM International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ingentec position performs unexpectedly, HIM International 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 HIM International will offset losses from the drop in HIM International's long position.| Ingentec vs. AzureWave Technologies | Ingentec vs. Microelectronics Technology | Ingentec vs. Simplo Technology Co | Ingentec vs. Hunya Foods Co |
| HIM International vs. Cameo Communications | HIM International vs. Nova Technology | HIM International vs. TWOWAY Communications | HIM International vs. Asmedia Technology |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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