Correlation Between Coretronic and E Lead
Can any of the company-specific risk be diversified away by investing in both Coretronic and E Lead 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 Coretronic and E Lead into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coretronic and E Lead Electronic Co, you can compare the effects of market volatilities on Coretronic and E Lead 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 Coretronic with a short position of E Lead. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coretronic and E Lead.
Diversification Opportunities for Coretronic and E Lead
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Coretronic and 2497 is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Coretronic and E Lead Electronic Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on E Lead Electronic and Coretronic 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 Coretronic are associated (or correlated) with E Lead. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of E Lead Electronic has no effect on the direction of Coretronic i.e., Coretronic and E Lead go up and down completely randomly.
Pair Corralation between Coretronic and E Lead
Assuming the 90 days trading horizon Coretronic is expected to under-perform the E Lead. But the stock apears to be less risky and, when comparing its historical volatility, Coretronic is 1.25 times less risky than E Lead. The stock trades about -0.12 of its potential returns per unit of risk. The E Lead Electronic Co is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 5,870 in E Lead Electronic Co on August 29, 2024 and sell it today you would earn a total of 600.00 from holding E Lead Electronic Co or generate 10.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Coretronic vs. E Lead Electronic Co
Performance |
| Timeline |
| Coretronic |
| E Lead Electronic |
Coretronic and E Lead Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coretronic and E Lead
The main advantage of trading using opposite Coretronic and E Lead positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coretronic position performs unexpectedly, E Lead 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 E Lead will offset losses from the drop in E Lead's long position.| Coretronic vs. Qisda Corp | Coretronic vs. AU Optronics | Coretronic vs. Vanguard International Semiconductor | Coretronic vs. Lite On Technology Corp |
| E Lead vs. Weltrend Semiconductor | E Lead vs. Catcher Technology Co | E Lead vs. Cub Elecparts | E Lead vs. Elan Microelectronics Corp |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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