Correlation Between INPAQ Technology and Lelon Electronics
Can any of the company-specific risk be diversified away by investing in both INPAQ Technology and Lelon Electronics 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 INPAQ Technology and Lelon Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between INPAQ Technology Co and Lelon Electronics Corp, you can compare the effects of market volatilities on INPAQ Technology and Lelon Electronics 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 INPAQ Technology with a short position of Lelon Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of INPAQ Technology and Lelon Electronics.
Diversification Opportunities for INPAQ Technology and Lelon Electronics
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between INPAQ and Lelon is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding INPAQ Technology Co and Lelon Electronics Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lelon Electronics Corp and INPAQ 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 INPAQ Technology Co are associated (or correlated) with Lelon Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lelon Electronics Corp has no effect on the direction of INPAQ Technology i.e., INPAQ Technology and Lelon Electronics go up and down completely randomly.
Pair Corralation between INPAQ Technology and Lelon Electronics
Assuming the 90 days trading horizon INPAQ Technology Co is expected to under-perform the Lelon Electronics. In addition to that, INPAQ Technology is 1.43 times more volatile than Lelon Electronics Corp. It trades about -0.21 of its total potential returns per unit of risk. Lelon Electronics Corp is currently generating about 0.09 per unit of volatility. If you would invest 7,440 in Lelon Electronics Corp on August 30, 2024 and sell it today you would earn a total of 230.00 from holding Lelon Electronics Corp or generate 3.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
INPAQ Technology Co vs. Lelon Electronics Corp
Performance |
| Timeline |
| INPAQ Technology |
| Lelon Electronics Corp |
INPAQ Technology and Lelon Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INPAQ Technology and Lelon Electronics
The main advantage of trading using opposite INPAQ Technology and Lelon Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INPAQ Technology position performs unexpectedly, Lelon Electronics 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 Lelon Electronics will offset losses from the drop in Lelon Electronics' long position.| INPAQ Technology vs. Prosperity Dielectrics Co | INPAQ Technology vs. Wafer Works | INPAQ Technology vs. Walsin Technology Corp | INPAQ Technology vs. Holtek Semiconductor |
| Lelon Electronics vs. TA I Technology Co | Lelon Electronics vs. Walsin Technology Corp | Lelon Electronics vs. Greatek Electronics | Lelon Electronics vs. Pan Jit International |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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