Correlation Between Figaro Coffee and Integrated Micro
Can any of the company-specific risk be diversified away by investing in both Figaro Coffee and Integrated Micro 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 Figaro Coffee and Integrated Micro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Figaro Coffee Group and Integrated Micro Electronics, you can compare the effects of market volatilities on Figaro Coffee and Integrated Micro 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 Figaro Coffee with a short position of Integrated Micro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Figaro Coffee and Integrated Micro.
Diversification Opportunities for Figaro Coffee and Integrated Micro
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Figaro and Integrated is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Figaro Coffee Group and Integrated Micro Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Integrated Micro Ele and Figaro Coffee 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 Figaro Coffee Group are associated (or correlated) with Integrated Micro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Integrated Micro Ele has no effect on the direction of Figaro Coffee i.e., Figaro Coffee and Integrated Micro go up and down completely randomly.
Pair Corralation between Figaro Coffee and Integrated Micro
Assuming the 90 days trading horizon Figaro Coffee Group is expected to generate 0.91 times more return on investment than Integrated Micro. However, Figaro Coffee Group is 1.09 times less risky than Integrated Micro. It trades about 0.01 of its potential returns per unit of risk. Integrated Micro Electronics is currently generating about -0.01 per unit of risk. If you would invest 86.00 in Figaro Coffee Group on August 30, 2024 and sell it today you would earn a total of 0.00 from holding Figaro Coffee Group or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Figaro Coffee Group vs. Integrated Micro Electronics
Performance |
| Timeline |
| Figaro Coffee Group |
| Integrated Micro Ele |
Figaro Coffee and Integrated Micro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Figaro Coffee and Integrated Micro
The main advantage of trading using opposite Figaro Coffee and Integrated Micro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Figaro Coffee position performs unexpectedly, Integrated Micro 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 Micro will offset losses from the drop in Integrated Micro's long position.| Figaro Coffee vs. Converge Information Communications | Figaro Coffee vs. Top Frontier Investment | Figaro Coffee vs. Apex Mining Co | Figaro Coffee vs. Allhome Corp |
| Integrated Micro vs. Cirtek Holdings Philippines | Integrated Micro vs. Cirtek Holdings Philippines | Integrated Micro vs. GT Capital Holdings | Integrated Micro vs. Allhome Corp |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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