Correlation Between China Crystal and Intellian Technologies
Can any of the company-specific risk be diversified away by investing in both China Crystal and Intellian Technologies 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 China Crystal and Intellian Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between China Crystal New and Intellian Technologies, you can compare the effects of market volatilities on China Crystal and Intellian Technologies 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 China Crystal with a short position of Intellian Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Crystal and Intellian Technologies.
Diversification Opportunities for China Crystal and Intellian Technologies
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and Intellian is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding China Crystal New and Intellian Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intellian Technologies and China Crystal 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 China Crystal New are associated (or correlated) with Intellian Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intellian Technologies has no effect on the direction of China Crystal i.e., China Crystal and Intellian Technologies go up and down completely randomly.
Pair Corralation between China Crystal and Intellian Technologies
Assuming the 90 days trading horizon China Crystal New is expected to under-perform the Intellian Technologies. But the stock apears to be less risky and, when comparing its historical volatility, China Crystal New is 1.16 times less risky than Intellian Technologies. The stock trades about -0.09 of its potential returns per unit of risk. The Intellian Technologies is currently generating about -0.07 of returns per unit of risk over similar time horizon. If you would invest 7,679,123 in Intellian Technologies on August 24, 2024 and sell it today you would lose (3,719,123) from holding Intellian Technologies or give up 48.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Crystal New vs. Intellian Technologies
Performance |
| Timeline |
| China Crystal New |
| Intellian Technologies |
China Crystal and Intellian Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Crystal and Intellian Technologies
The main advantage of trading using opposite China Crystal and Intellian Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Crystal position performs unexpectedly, Intellian Technologies 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 Intellian Technologies will offset losses from the drop in Intellian Technologies' long position.| China Crystal vs. Intellian Technologies | China Crystal vs. Orbitech Co | China Crystal vs. Samsung Publishing Co | China Crystal vs. Woori Technology |
| Intellian Technologies vs. Korea Real Estate | Intellian Technologies vs. Korea Ratings Co | Intellian Technologies vs. IQuest Co | Intellian Technologies vs. Wonbang Tech 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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