Correlation Between Corning Incorporated and Immersion
Can any of the company-specific risk be diversified away by investing in both Corning Incorporated and Immersion 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 Corning Incorporated and Immersion into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Corning Incorporated and Immersion, you can compare the effects of market volatilities on Corning Incorporated and Immersion 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 Corning Incorporated with a short position of Immersion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Corning Incorporated and Immersion.
Diversification Opportunities for Corning Incorporated and Immersion
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Corning and Immersion is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Corning Incorporated and Immersion in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Immersion and Corning Incorporated 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 Corning Incorporated are associated (or correlated) with Immersion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Immersion has no effect on the direction of Corning Incorporated i.e., Corning Incorporated and Immersion go up and down completely randomly.
Pair Corralation between Corning Incorporated and Immersion
Considering the 90-day investment horizon Corning Incorporated is expected to generate 0.62 times more return on investment than Immersion. However, Corning Incorporated is 1.62 times less risky than Immersion. It trades about 0.06 of its potential returns per unit of risk. Immersion is currently generating about 0.02 per unit of risk. If you would invest 3,140 in Corning Incorporated on August 31, 2024 and sell it today you would earn a total of 1,682 from holding Corning Incorporated or generate 53.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Corning Incorporated vs. Immersion
Performance |
| Timeline |
| Corning Incorporated |
| Immersion |
Corning Incorporated and Immersion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Corning Incorporated and Immersion
The main advantage of trading using opposite Corning Incorporated and Immersion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Corning Incorporated position performs unexpectedly, Immersion 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 Immersion will offset losses from the drop in Immersion's long position.| Corning Incorporated vs. OSI Systems | Corning Incorporated vs. Fabrinet | Corning Incorporated vs. Jabil Circuit | Corning Incorporated vs. Vicor |
| Immersion vs. Meridianlink | Immersion vs. CoreCard Corp | Immersion vs. Enfusion | Immersion vs. Alkami Technology |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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