Correlation Between QST International and Intai Technology
Can any of the company-specific risk be diversified away by investing in both QST International and Intai 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 QST International and Intai Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between QST International and Intai Technology, you can compare the effects of market volatilities on QST International and Intai 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 QST International with a short position of Intai Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of QST International and Intai Technology.
Diversification Opportunities for QST International and Intai Technology
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between QST and Intai is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding QST International and Intai Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intai Technology and QST International 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 QST International are associated (or correlated) with Intai Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intai Technology has no effect on the direction of QST International i.e., QST International and Intai Technology go up and down completely randomly.
Pair Corralation between QST International and Intai Technology
Assuming the 90 days trading horizon QST International is expected to generate 37.18 times more return on investment than Intai Technology. However, QST International is 37.18 times more volatile than Intai Technology. It trades about 0.06 of its potential returns per unit of risk. Intai Technology is currently generating about -0.01 per unit of risk. If you would invest 5,036 in QST International on January 14, 2025 and sell it today you would earn a total of 84.00 from holding QST International or generate 1.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
QST International vs. Intai Technology
Performance |
| Timeline |
| QST International |
| Intai Technology |
QST International and Intai Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with QST International and Intai Technology
The main advantage of trading using opposite QST International and Intai Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if QST International position performs unexpectedly, Intai 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 Intai Technology will offset losses from the drop in Intai Technology's long position.| QST International vs. Hota Industrial Mfg | QST International vs. BizLink Holding | QST International vs. Flexium Interconnect | QST International vs. Chen Full International |
| Intai Technology vs. Orient Semiconductor Electronics | Intai Technology vs. China Times Publishing | Intai Technology vs. Yungshin Construction Development | Intai Technology vs. Weltrend Semiconductor |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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