Correlation Between Deswell Industries and Integrated Media
Can any of the company-specific risk be diversified away by investing in both Deswell Industries and Integrated Media 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 Deswell Industries and Integrated Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Deswell Industries and Integrated Media Technology, you can compare the effects of market volatilities on Deswell Industries and Integrated Media 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 Deswell Industries with a short position of Integrated Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Deswell Industries and Integrated Media.
Diversification Opportunities for Deswell Industries and Integrated Media
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Deswell and Integrated is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Deswell Industries and Integrated Media Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Integrated Media Tec and Deswell Industries 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 Deswell Industries are associated (or correlated) with Integrated Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Integrated Media Tec has no effect on the direction of Deswell Industries i.e., Deswell Industries and Integrated Media go up and down completely randomly.
Pair Corralation between Deswell Industries and Integrated Media
Given the investment horizon of 90 days Deswell Industries is expected to under-perform the Integrated Media. But the stock apears to be less risky and, when comparing its historical volatility, Deswell Industries is 4.38 times less risky than Integrated Media. The stock trades about -0.01 of its potential returns per unit of risk. The Integrated Media Technology is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 126.00 in Integrated Media Technology on November 3, 2024 and sell it today you would earn a total of 0.00 from holding Integrated Media Technology or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Deswell Industries vs. Integrated Media Technology
Performance |
| Timeline |
| Deswell Industries |
| Integrated Media Tec |
Deswell Industries and Integrated Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Deswell Industries and Integrated Media
The main advantage of trading using opposite Deswell Industries and Integrated Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Deswell Industries position performs unexpectedly, Integrated Media 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 Integrated Media will offset losses from the drop in Integrated Media's long position.| Deswell Industries vs. Ieh Corp | Deswell Industries vs. LGL Group | Deswell Industries vs. SigmaTron International | Deswell Industries vs. Daktronics |
| Integrated Media vs. SigmaTron International | Integrated Media vs. Data IO | Integrated Media vs. Research Frontiers Incorporated | Integrated Media vs. Maris Tech |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |