Correlation Between ADLINK Technology and Intai Technology
Can any of the company-specific risk be diversified away by investing in both ADLINK Technology and Intai 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 ADLINK Technology and Intai Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ADLINK Technology and Intai Technology, you can compare the effects of market volatilities on ADLINK Technology and Intai 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 ADLINK Technology with a short position of Intai Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of ADLINK Technology and Intai Technology.
Diversification Opportunities for ADLINK Technology and Intai Technology
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between ADLINK and Intai is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding ADLINK Technology and Intai Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intai Technology 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 Intai Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intai Technology has no effect on the direction of ADLINK Technology i.e., ADLINK Technology and Intai Technology go up and down completely randomly.
Pair Corralation between ADLINK Technology and Intai Technology
Assuming the 90 days trading horizon ADLINK Technology is expected to generate 2.52 times more return on investment than Intai Technology. However, ADLINK Technology is 2.52 times more volatile than Intai Technology. It trades about 0.07 of its potential returns per unit of risk. Intai Technology is currently generating about 0.0 per unit of risk. If you would invest 6,480 in ADLINK Technology on November 4, 2024 and sell it today you would earn a total of 1,060 from holding ADLINK Technology or generate 16.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ADLINK Technology vs. Intai Technology
Performance |
| Timeline |
| ADLINK Technology |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Insignificant
| Intai Technology |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
ADLINK Technology and Intai Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ADLINK Technology and Intai Technology
The main advantage of trading using opposite ADLINK Technology and Intai Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ADLINK Technology position performs unexpectedly, Intai 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 Intai Technology will offset losses from the drop in Intai Technology's long position.The idea behind ADLINK Technology and Intai 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.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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |