Correlation Between EMagin and Deswell Industries
Can any of the company-specific risk be diversified away by investing in both EMagin and Deswell 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 EMagin and Deswell Industries into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EMagin and Deswell Industries, you can compare the effects of market volatilities on EMagin and Deswell 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 EMagin with a short position of Deswell Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of EMagin and Deswell Industries.
Diversification Opportunities for EMagin and Deswell Industries
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between EMagin and Deswell is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding EMagin and Deswell Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Deswell Industries and EMagin 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 EMagin are associated (or correlated) with Deswell Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Deswell Industries has no effect on the direction of EMagin i.e., EMagin and Deswell Industries go up and down completely randomly.
Pair Corralation between EMagin and Deswell Industries
If you would invest 239.00 in Deswell Industries on November 29, 2024 and sell it today you would earn a total of 0.00 from holding Deswell Industries or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
EMagin vs. Deswell Industries
Performance |
| Timeline |
| EMagin |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Deswell Industries |
EMagin and Deswell Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EMagin and Deswell Industries
The main advantage of trading using opposite EMagin and Deswell Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EMagin position performs unexpectedly, Deswell 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 Deswell Industries will offset losses from the drop in Deswell Industries' long position.| EMagin vs. KULR Technology Group | EMagin vs. Ouster, Common Stock | EMagin vs. LightPath Technologies | EMagin vs. Daktronics |
| Deswell Industries vs. Ieh Corp | Deswell Industries vs. LGL Group | Deswell Industries vs. SigmaTron International | Deswell Industries vs. Daktronics |
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.
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