Correlation Between PlayNitride and Inmax Holding
Can any of the company-specific risk be diversified away by investing in both PlayNitride and Inmax Holding 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 PlayNitride and Inmax Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PlayNitride and Inmax Holding Co, you can compare the effects of market volatilities on PlayNitride and Inmax Holding 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 PlayNitride with a short position of Inmax Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of PlayNitride and Inmax Holding.
Diversification Opportunities for PlayNitride and Inmax Holding
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between PlayNitride and Inmax is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding PlayNitride and Inmax Holding Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inmax Holding and PlayNitride 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 PlayNitride are associated (or correlated) with Inmax Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inmax Holding has no effect on the direction of PlayNitride i.e., PlayNitride and Inmax Holding go up and down completely randomly.
Pair Corralation between PlayNitride and Inmax Holding
Assuming the 90 days trading horizon PlayNitride is expected to generate 1.17 times more return on investment than Inmax Holding. However, PlayNitride is 1.17 times more volatile than Inmax Holding Co. It trades about 0.15 of its potential returns per unit of risk. Inmax Holding Co is currently generating about -0.05 per unit of risk. If you would invest 7,780 in PlayNitride on September 3, 2024 and sell it today you would earn a total of 6,270 from holding PlayNitride or generate 80.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PlayNitride vs. Inmax Holding Co
Performance |
| Timeline |
| PlayNitride |
| Inmax Holding |
PlayNitride and Inmax Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PlayNitride and Inmax Holding
The main advantage of trading using opposite PlayNitride and Inmax Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PlayNitride position performs unexpectedly, Inmax Holding 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 Inmax Holding will offset losses from the drop in Inmax Holding's long position.| PlayNitride vs. Taiwan Semiconductor Manufacturing | PlayNitride vs. Hon Hai Precision | PlayNitride vs. MediaTek | PlayNitride vs. Chunghwa Telecom Co |
| Inmax Holding vs. RiTdisplay Corp | Inmax Holding vs. Medigen Biotechnology | Inmax Holding vs. PlayNitride | Inmax Holding vs. Chernan Metal Industrial |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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