Correlation Between Integrated Micro and Globe Telecom
Can any of the company-specific risk be diversified away by investing in both Integrated Micro and Globe Telecom 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 Integrated Micro and Globe Telecom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Integrated Micro Electronics and Globe Telecom, you can compare the effects of market volatilities on Integrated Micro and Globe Telecom 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 Integrated Micro with a short position of Globe Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integrated Micro and Globe Telecom.
Diversification Opportunities for Integrated Micro and Globe Telecom
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Integrated and Globe is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Integrated Micro Electronics and Globe Telecom in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Globe Telecom and Integrated Micro 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 Integrated Micro Electronics are associated (or correlated) with Globe Telecom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Globe Telecom has no effect on the direction of Integrated Micro i.e., Integrated Micro and Globe Telecom go up and down completely randomly.
Pair Corralation between Integrated Micro and Globe Telecom
Assuming the 90 days trading horizon Integrated Micro Electronics is expected to generate 3.29 times more return on investment than Globe Telecom. However, Integrated Micro is 3.29 times more volatile than Globe Telecom. It trades about 0.14 of its potential returns per unit of risk. Globe Telecom is currently generating about 0.01 per unit of risk. If you would invest 147.00 in Integrated Micro Electronics on November 28, 2024 and sell it today you would earn a total of 14.00 from holding Integrated Micro Electronics or generate 9.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Integrated Micro Electronics vs. Globe Telecom
Performance |
| Timeline |
| Integrated Micro Ele |
| Globe Telecom |
Integrated Micro and Globe Telecom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Integrated Micro and Globe Telecom
The main advantage of trading using opposite Integrated Micro and Globe Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integrated Micro position performs unexpectedly, Globe Telecom 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 Globe Telecom will offset losses from the drop in Globe Telecom's long position.| Integrated Micro vs. Converge Information Communications | Integrated Micro vs. Rizal Commercial Banking | Integrated Micro vs. Bank of the | Integrated Micro vs. Security Bank Corp |
| Globe Telecom vs. Apex Mining Co | Globe Telecom vs. Allhome Corp | Globe Telecom vs. Suntrust Home Developers | Globe Telecom vs. Figaro Coffee Group |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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