Correlation Between InTest and Transphorm Technology
Can any of the company-specific risk be diversified away by investing in both InTest and Transphorm Technology 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 InTest and Transphorm Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between inTest and Transphorm Technology, you can compare the effects of market volatilities on InTest and Transphorm Technology 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 InTest with a short position of Transphorm Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of InTest and Transphorm Technology.
Diversification Opportunities for InTest and Transphorm Technology
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between InTest and Transphorm is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding inTest and Transphorm Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Transphorm Technology and InTest 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 inTest are associated (or correlated) with Transphorm Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Transphorm Technology has no effect on the direction of InTest i.e., InTest and Transphorm Technology go up and down completely randomly.
Pair Corralation between InTest and Transphorm Technology
Given the investment horizon of 90 days inTest is expected to under-perform the Transphorm Technology. In addition to that, InTest is 1.14 times more volatile than Transphorm Technology. It trades about -0.01 of its total potential returns per unit of risk. Transphorm Technology is currently generating about 0.15 per unit of volatility. If you would invest 261.00 in Transphorm Technology on October 25, 2024 and sell it today you would earn a total of 249.00 from holding Transphorm Technology or generate 95.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 52.6% |
| Values | Daily Returns |
inTest vs. Transphorm Technology
Performance |
| Timeline |
| inTest |
| Transphorm Technology |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
InTest and Transphorm Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with InTest and Transphorm Technology
The main advantage of trading using opposite InTest and Transphorm Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if InTest position performs unexpectedly, Transphorm Technology 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 Transphorm Technology will offset losses from the drop in Transphorm Technology's long position.| InTest vs. Axcelis Technologies | InTest vs. Lam Research Corp | InTest vs. Photronics | InTest vs. indie Semiconductor |
| Transphorm Technology vs. Sumco Corp ADR | Transphorm Technology vs. Lasertec | Transphorm Technology vs. Asm Pacific Technology | Transphorm Technology vs. Disco Corp ADR |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |