Correlation Between Integrated Micro and Swift Foods
Can any of the company-specific risk be diversified away by investing in both Integrated Micro and Swift Foods 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 Swift Foods 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 Swift Foods, you can compare the effects of market volatilities on Integrated Micro and Swift Foods 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 Swift Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integrated Micro and Swift Foods.
Diversification Opportunities for Integrated Micro and Swift Foods
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Integrated and Swift is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Integrated Micro Electronics and Swift Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Swift Foods 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 Swift Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Swift Foods has no effect on the direction of Integrated Micro i.e., Integrated Micro and Swift Foods go up and down completely randomly.
Pair Corralation between Integrated Micro and Swift Foods
Assuming the 90 days trading horizon Integrated Micro Electronics is expected to under-perform the Swift Foods. But the stock apears to be less risky and, when comparing its historical volatility, Integrated Micro Electronics is 1.77 times less risky than Swift Foods. The stock trades about -0.06 of its potential returns per unit of risk. The Swift Foods is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 6.80 in Swift Foods on September 1, 2024 and sell it today you would lose (1.00) from holding Swift Foods or give up 14.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 89.52% |
| Values | Daily Returns |
Integrated Micro Electronics vs. Swift Foods
Performance |
| Timeline |
| Integrated Micro Ele |
| Swift Foods |
Integrated Micro and Swift Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Integrated Micro and Swift Foods
The main advantage of trading using opposite Integrated Micro and Swift Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integrated Micro position performs unexpectedly, Swift Foods 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 Swift Foods will offset losses from the drop in Swift Foods' long position.| Integrated Micro vs. GT Capital Holdings | Integrated Micro vs. Allhome Corp | Integrated Micro vs. Jollibee Foods Corp | Integrated Micro vs. LFM Properties Corp |
| Swift Foods vs. Metro Retail Stores | Swift Foods vs. Century Pacific Food | Swift Foods vs. Manila Mining Corp | Swift Foods vs. Apex Mining Co |
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.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |