Correlation Between Flexium Interconnect and Chroma ATE
Can any of the company-specific risk be diversified away by investing in both Flexium Interconnect and Chroma ATE 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 Flexium Interconnect and Chroma ATE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Flexium Interconnect and Chroma ATE, you can compare the effects of market volatilities on Flexium Interconnect and Chroma ATE 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 Flexium Interconnect with a short position of Chroma ATE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flexium Interconnect and Chroma ATE.
Diversification Opportunities for Flexium Interconnect and Chroma ATE
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Flexium and Chroma is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Flexium Interconnect and Chroma ATE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chroma ATE and Flexium Interconnect 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 Flexium Interconnect are associated (or correlated) with Chroma ATE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chroma ATE has no effect on the direction of Flexium Interconnect i.e., Flexium Interconnect and Chroma ATE go up and down completely randomly.
Pair Corralation between Flexium Interconnect and Chroma ATE
Assuming the 90 days trading horizon Flexium Interconnect is expected to generate 0.53 times more return on investment than Chroma ATE. However, Flexium Interconnect is 1.88 times less risky than Chroma ATE. It trades about 0.06 of its potential returns per unit of risk. Chroma ATE is currently generating about -0.06 per unit of risk. If you would invest 6,760 in Flexium Interconnect on November 27, 2024 and sell it today you would earn a total of 350.00 from holding Flexium Interconnect or generate 5.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Flexium Interconnect vs. Chroma ATE
Performance |
| Timeline |
| Flexium Interconnect |
| Chroma ATE |
Flexium Interconnect and Chroma ATE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flexium Interconnect and Chroma ATE
The main advantage of trading using opposite Flexium Interconnect and Chroma ATE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flexium Interconnect position performs unexpectedly, Chroma ATE 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 Chroma ATE will offset losses from the drop in Chroma ATE's long position.| Flexium Interconnect vs. Zhen Ding Technology | Flexium Interconnect vs. Catcher Technology Co | Flexium Interconnect vs. Unimicron Technology Corp | Flexium Interconnect vs. Career Technology MFG |
| Chroma ATE vs. Accton Technology Corp | Chroma ATE vs. Delta Electronics | Chroma ATE vs. Chicony Electronics Co | Chroma ATE vs. Advantech Co |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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