Correlation Between INPAQ Technology and Liton Technology
Can any of the company-specific risk be diversified away by investing in both INPAQ Technology and Liton 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 INPAQ Technology and Liton Technology 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 Liton Technology, you can compare the effects of market volatilities on INPAQ Technology and Liton 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 INPAQ Technology with a short position of Liton Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of INPAQ Technology and Liton Technology.
Diversification Opportunities for INPAQ Technology and Liton Technology
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between INPAQ and Liton is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding INPAQ Technology Co and Liton Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Liton Technology 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 Liton Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Liton Technology has no effect on the direction of INPAQ Technology i.e., INPAQ Technology and Liton Technology go up and down completely randomly.
Pair Corralation between INPAQ Technology and Liton Technology
Assuming the 90 days trading horizon INPAQ Technology Co is expected to under-perform the Liton Technology. But the stock apears to be less risky and, when comparing its historical volatility, INPAQ Technology Co is 1.59 times less risky than Liton Technology. The stock trades about -0.03 of its potential returns per unit of risk. The Liton Technology is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 3,495 in Liton Technology on September 2, 2024 and sell it today you would earn a total of 705.00 from holding Liton Technology or generate 20.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
INPAQ Technology Co vs. Liton Technology
Performance |
| Timeline |
| INPAQ Technology |
| Liton Technology |
INPAQ Technology and Liton Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INPAQ Technology and Liton Technology
The main advantage of trading using opposite INPAQ Technology and Liton Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INPAQ Technology position performs unexpectedly, Liton 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 Liton Technology will offset losses from the drop in Liton Technology's long position.| INPAQ Technology vs. Hon Hai Precision | INPAQ Technology vs. Delta Electronics | INPAQ Technology vs. LARGAN Precision Co | INPAQ Technology vs. Yageo Corp |
| Liton Technology vs. Prosperity Dielectrics Co | Liton Technology vs. Lelon Electronics Corp | Liton Technology vs. Wafer Works | Liton Technology vs. INPAQ Technology 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |