Correlation Between EMagin and Fabrinet
Can any of the company-specific risk be diversified away by investing in both EMagin and Fabrinet 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 Fabrinet into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EMagin and Fabrinet, you can compare the effects of market volatilities on EMagin and Fabrinet 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 Fabrinet. Check out your portfolio center. Please also check ongoing floating volatility patterns of EMagin and Fabrinet.
Diversification Opportunities for EMagin and Fabrinet
Very weak diversification
The 3 months correlation between EMagin and Fabrinet is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding EMagin and Fabrinet in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fabrinet 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 Fabrinet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fabrinet has no effect on the direction of EMagin i.e., EMagin and Fabrinet go up and down completely randomly.
Pair Corralation between EMagin and Fabrinet
If you would invest 200.00 in EMagin on August 28, 2024 and sell it today you would earn a total of 0.00 from holding EMagin or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
EMagin vs. Fabrinet
Performance |
| Timeline |
| EMagin |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Fabrinet |
EMagin and Fabrinet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EMagin and Fabrinet
The main advantage of trading using opposite EMagin and Fabrinet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EMagin position performs unexpectedly, Fabrinet 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 Fabrinet will offset losses from the drop in Fabrinet's long position.| EMagin vs. KULR Technology Group | EMagin vs. Ouster Inc | EMagin vs. LightPath Technologies | EMagin 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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