Correlation Between Integrated Media and Radware
Can any of the company-specific risk be diversified away by investing in both Integrated Media and Radware 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 Media and Radware into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Integrated Media Technology and Radware, you can compare the effects of market volatilities on Integrated Media and Radware 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 Media with a short position of Radware. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integrated Media and Radware.
Diversification Opportunities for Integrated Media and Radware
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Integrated and Radware is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Integrated Media Technology and Radware in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Radware and Integrated Media 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 Media Technology are associated (or correlated) with Radware. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Radware has no effect on the direction of Integrated Media i.e., Integrated Media and Radware go up and down completely randomly.
Pair Corralation between Integrated Media and Radware
Given the investment horizon of 90 days Integrated Media Technology is expected to under-perform the Radware. In addition to that, Integrated Media is 1.58 times more volatile than Radware. It trades about -0.24 of its total potential returns per unit of risk. Radware is currently generating about 0.18 per unit of volatility. If you would invest 2,169 in Radware on September 2, 2024 and sell it today you would earn a total of 207.00 from holding Radware or generate 9.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Integrated Media Technology vs. Radware
Performance |
| Timeline |
| Integrated Media Tec |
| Radware |
Integrated Media and Radware Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Integrated Media and Radware
The main advantage of trading using opposite Integrated Media and Radware positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integrated Media position performs unexpectedly, Radware 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 Radware will offset losses from the drop in Radware's long position.| Integrated Media vs. SigmaTron International | Integrated Media vs. Data IO | Integrated Media vs. Research Frontiers Incorporated | Integrated Media vs. Maris Tech |
| Radware vs. Evertec | Radware vs. Consensus Cloud Solutions | Radware vs. Global Blue Group | Radware vs. CSG Systems International |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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