Correlation Between C Media and Insyde Software
Can any of the company-specific risk be diversified away by investing in both C Media and Insyde Software 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 C Media and Insyde Software into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between C Media Electronics and Insyde Software, you can compare the effects of market volatilities on C Media and Insyde Software 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 C Media with a short position of Insyde Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of C Media and Insyde Software.
Diversification Opportunities for C Media and Insyde Software
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between 6237 and Insyde is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding C Media Electronics and Insyde Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Insyde Software and C Media 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 C Media Electronics are associated (or correlated) with Insyde Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Insyde Software has no effect on the direction of C Media i.e., C Media and Insyde Software go up and down completely randomly.
Pair Corralation between C Media and Insyde Software
Assuming the 90 days trading horizon C Media Electronics is expected to generate 1.37 times more return on investment than Insyde Software. However, C Media is 1.37 times more volatile than Insyde Software. It trades about 0.19 of its potential returns per unit of risk. Insyde Software is currently generating about -0.04 per unit of risk. If you would invest 5,030 in C Media Electronics on October 11, 2024 and sell it today you would earn a total of 770.00 from holding C Media Electronics or generate 15.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
C Media Electronics vs. Insyde Software
Performance |
| Timeline |
| C Media Electronics |
| Insyde Software |
C Media and Insyde Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with C Media and Insyde Software
The main advantage of trading using opposite C Media and Insyde Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if C Media position performs unexpectedly, Insyde Software 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 Insyde Software will offset losses from the drop in Insyde Software's long position.| C Media vs. Taishin Financial Holding | C Media vs. Fulin Plastic Industry | C Media vs. Asia Electronic Material | C Media vs. Yonyu Plastics Co |
| Insyde Software vs. Ablerex Electronics Co | Insyde Software vs. Onyx Healthcare | Insyde Software vs. C Media Electronics | Insyde Software vs. Wei Chuan Foods |
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 Stocks Directory module to find actively traded stocks across global markets.
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