Correlation Between Corsair Gaming and Insteel Industries
Can any of the company-specific risk be diversified away by investing in both Corsair Gaming and Insteel Industries 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 Corsair Gaming and Insteel Industries into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Corsair Gaming and Insteel Industries, you can compare the effects of market volatilities on Corsair Gaming and Insteel Industries 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 Corsair Gaming with a short position of Insteel Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Corsair Gaming and Insteel Industries.
Diversification Opportunities for Corsair Gaming and Insteel Industries
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Corsair and Insteel is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Corsair Gaming and Insteel Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Insteel Industries and Corsair Gaming 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 Corsair Gaming are associated (or correlated) with Insteel Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Insteel Industries has no effect on the direction of Corsair Gaming i.e., Corsair Gaming and Insteel Industries go up and down completely randomly.
Pair Corralation between Corsair Gaming and Insteel Industries
Assuming the 90 days horizon Corsair Gaming is expected to generate 2.56 times more return on investment than Insteel Industries. However, Corsair Gaming is 2.56 times more volatile than Insteel Industries. It trades about 0.13 of its potential returns per unit of risk. Insteel Industries is currently generating about 0.29 per unit of risk. If you would invest 605.00 in Corsair Gaming on September 1, 2024 and sell it today you would earn a total of 84.00 from holding Corsair Gaming or generate 13.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Corsair Gaming vs. Insteel Industries
Performance |
| Timeline |
| Corsair Gaming |
| Insteel Industries |
Corsair Gaming and Insteel Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Corsair Gaming and Insteel Industries
The main advantage of trading using opposite Corsair Gaming and Insteel Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Corsair Gaming position performs unexpectedly, Insteel Industries 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 Insteel Industries will offset losses from the drop in Insteel Industries' long position.| Corsair Gaming vs. SEIKO EPSON PADR | Corsair Gaming vs. Superior Plus Corp | Corsair Gaming vs. NMI Holdings | Corsair Gaming vs. Origin Agritech |
| Insteel Industries vs. Wayside Technology Group | Insteel Industries vs. FANDIFI TECHNOLOGY P | Insteel Industries vs. WisdomTree Investments | Insteel Industries vs. MGIC INVESTMENT |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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