Correlation Between Flytech Technology and I Sheng
Can any of the company-specific risk be diversified away by investing in both Flytech Technology and I Sheng 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 Flytech Technology and I Sheng into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Flytech Technology Co and I Sheng Electric Wire, you can compare the effects of market volatilities on Flytech Technology and I Sheng 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 Flytech Technology with a short position of I Sheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flytech Technology and I Sheng.
Diversification Opportunities for Flytech Technology and I Sheng
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Flytech and 6115 is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Flytech Technology Co and I Sheng Electric Wire in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on I Sheng Electric and Flytech 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 Flytech Technology Co are associated (or correlated) with I Sheng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of I Sheng Electric has no effect on the direction of Flytech Technology i.e., Flytech Technology and I Sheng go up and down completely randomly.
Pair Corralation between Flytech Technology and I Sheng
Assuming the 90 days trading horizon Flytech Technology Co is expected to generate 1.65 times more return on investment than I Sheng. However, Flytech Technology is 1.65 times more volatile than I Sheng Electric Wire. It trades about 0.03 of its potential returns per unit of risk. I Sheng Electric Wire is currently generating about 0.04 per unit of risk. If you would invest 7,190 in Flytech Technology Co on September 2, 2024 and sell it today you would earn a total of 1,060 from holding Flytech Technology Co or generate 14.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Flytech Technology Co vs. I Sheng Electric Wire
Performance |
| Timeline |
| Flytech Technology |
| I Sheng Electric |
Flytech Technology and I Sheng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flytech Technology and I Sheng
The main advantage of trading using opposite Flytech Technology and I Sheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flytech Technology position performs unexpectedly, I Sheng 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 I Sheng will offset losses from the drop in I Sheng's long position.| Flytech Technology vs. Advantech Co | Flytech Technology vs. Posiflex Technology | Flytech Technology vs. IEI Integration Corp | Flytech Technology vs. Topco Scientific Co |
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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 Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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