Correlation Between ADLINK Technology and Integrated Service
Can any of the company-specific risk be diversified away by investing in both ADLINK Technology and Integrated Service 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 ADLINK Technology and Integrated Service into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ADLINK Technology and Integrated Service Technology, you can compare the effects of market volatilities on ADLINK Technology and Integrated Service 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 ADLINK Technology with a short position of Integrated Service. Check out your portfolio center. Please also check ongoing floating volatility patterns of ADLINK Technology and Integrated Service.
Diversification Opportunities for ADLINK Technology and Integrated Service
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ADLINK and Integrated is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ADLINK Technology and Integrated Service Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Integrated Service and ADLINK 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 ADLINK Technology are associated (or correlated) with Integrated Service. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Integrated Service has no effect on the direction of ADLINK Technology i.e., ADLINK Technology and Integrated Service go up and down completely randomly.
Pair Corralation between ADLINK Technology and Integrated Service
Assuming the 90 days trading horizon ADLINK Technology is expected to generate 0.67 times more return on investment than Integrated Service. However, ADLINK Technology is 1.5 times less risky than Integrated Service. It trades about 0.05 of its potential returns per unit of risk. Integrated Service Technology is currently generating about -0.02 per unit of risk. If you would invest 7,170 in ADLINK Technology on August 28, 2024 and sell it today you would earn a total of 370.00 from holding ADLINK Technology or generate 5.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ADLINK Technology vs. Integrated Service Technology
Performance |
| Timeline |
| ADLINK Technology |
| Integrated Service |
ADLINK Technology and Integrated Service Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ADLINK Technology and Integrated Service
The main advantage of trading using opposite ADLINK Technology and Integrated Service positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ADLINK Technology position performs unexpectedly, Integrated Service 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 Integrated Service will offset losses from the drop in Integrated Service's long position.The idea behind ADLINK Technology and Integrated Service Technology pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Integrated Service vs. Global Unichip Corp | Integrated Service vs. Asmedia Technology | Integrated Service vs. Unimicron Technology Corp | Integrated Service vs. Novatek 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 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.
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