Correlation Between Intuitive Investments and Compal Electronics
Can any of the company-specific risk be diversified away by investing in both Intuitive Investments and Compal Electronics 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 Intuitive Investments and Compal Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intuitive Investments Group and Compal Electronics GDR, you can compare the effects of market volatilities on Intuitive Investments and Compal Electronics 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 Intuitive Investments with a short position of Compal Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intuitive Investments and Compal Electronics.
Diversification Opportunities for Intuitive Investments and Compal Electronics
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Intuitive and Compal is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Intuitive Investments Group and Compal Electronics GDR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Compal Electronics GDR and Intuitive Investments 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 Intuitive Investments Group are associated (or correlated) with Compal Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Compal Electronics GDR has no effect on the direction of Intuitive Investments i.e., Intuitive Investments and Compal Electronics go up and down completely randomly.
Pair Corralation between Intuitive Investments and Compal Electronics
Assuming the 90 days trading horizon Intuitive Investments Group is expected to generate 1.24 times more return on investment than Compal Electronics. However, Intuitive Investments is 1.24 times more volatile than Compal Electronics GDR. It trades about 0.02 of its potential returns per unit of risk. Compal Electronics GDR is currently generating about 0.01 per unit of risk. If you would invest 12,000 in Intuitive Investments Group on September 24, 2024 and sell it today you would earn a total of 0.00 from holding Intuitive Investments Group or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.66% |
| Values | Daily Returns |
Intuitive Investments Group vs. Compal Electronics GDR
Performance |
| Timeline |
| Intuitive Investments |
| Compal Electronics GDR |
Intuitive Investments and Compal Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intuitive Investments and Compal Electronics
The main advantage of trading using opposite Intuitive Investments and Compal Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intuitive Investments position performs unexpectedly, Compal Electronics 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 Compal Electronics will offset losses from the drop in Compal Electronics' long position.| Intuitive Investments vs. Samsung Electronics Co | Intuitive Investments vs. Samsung Electronics Co | Intuitive Investments vs. Hyundai Motor | Intuitive Investments vs. Toyota Motor Corp |
| Compal Electronics vs. Quadrise Plc | Compal Electronics vs. ImmuPharma PLC | Compal Electronics vs. Intuitive Investments Group | Compal Electronics vs. European Metals Holdings |
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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