Correlation Between Vate Technology and Xintec
Can any of the company-specific risk be diversified away by investing in both Vate Technology and Xintec 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 Vate Technology and Xintec into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vate Technology Co and Xintec, you can compare the effects of market volatilities on Vate Technology and Xintec 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 Vate Technology with a short position of Xintec. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vate Technology and Xintec.
Diversification Opportunities for Vate Technology and Xintec
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Vate and Xintec is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Vate Technology Co and Xintec in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xintec and Vate 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 Vate Technology Co are associated (or correlated) with Xintec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xintec has no effect on the direction of Vate Technology i.e., Vate Technology and Xintec go up and down completely randomly.
Pair Corralation between Vate Technology and Xintec
Assuming the 90 days trading horizon Vate Technology Co is expected to under-perform the Xintec. But the stock apears to be less risky and, when comparing its historical volatility, Vate Technology Co is 1.89 times less risky than Xintec. The stock trades about -0.07 of its potential returns per unit of risk. The Xintec is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 12,706 in Xintec on September 3, 2024 and sell it today you would earn a total of 6,394 from holding Xintec or generate 50.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vate Technology Co vs. Xintec
Performance |
| Timeline |
| Vate Technology |
| Xintec |
Vate Technology and Xintec Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vate Technology and Xintec
The main advantage of trading using opposite Vate Technology and Xintec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vate Technology position performs unexpectedly, Xintec 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 Xintec will offset losses from the drop in Xintec's long position.| Vate Technology vs. Sitronix Technology Corp | Vate Technology vs. Kinsus Interconnect Technology | Vate Technology vs. WiseChip Semiconductor | Vate Technology vs. Novatek Microelectronics Corp |
| Xintec vs. GameSparcs Co | Xintec vs. International Games System | Xintec vs. Sunfar Computer Co | Xintec vs. Loop Telecommunication International |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |