Correlation Between Inoue Rubber and I2 Enterprise
Can any of the company-specific risk be diversified away by investing in both Inoue Rubber and I2 Enterprise 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 Inoue Rubber and I2 Enterprise into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inoue Rubber Public and I2 Enterprise Public, you can compare the effects of market volatilities on Inoue Rubber and I2 Enterprise 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 Inoue Rubber with a short position of I2 Enterprise. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inoue Rubber and I2 Enterprise.
Diversification Opportunities for Inoue Rubber and I2 Enterprise
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Inoue and I2 Enterprise is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Inoue Rubber Public and I2 Enterprise Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on I2 Enterprise Public and Inoue Rubber 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 Inoue Rubber Public are associated (or correlated) with I2 Enterprise. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of I2 Enterprise Public has no effect on the direction of Inoue Rubber i.e., Inoue Rubber and I2 Enterprise go up and down completely randomly.
Pair Corralation between Inoue Rubber and I2 Enterprise
Assuming the 90 days trading horizon Inoue Rubber Public is expected to generate 23.46 times more return on investment than I2 Enterprise. However, Inoue Rubber is 23.46 times more volatile than I2 Enterprise Public. It trades about 0.06 of its potential returns per unit of risk. I2 Enterprise Public is currently generating about -0.05 per unit of risk. If you would invest 1,329 in Inoue Rubber Public on September 20, 2024 and sell it today you would earn a total of 81.00 from holding Inoue Rubber Public or generate 6.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.59% |
| Values | Daily Returns |
Inoue Rubber Public vs. I2 Enterprise Public
Performance |
| Timeline |
| Inoue Rubber Public |
| I2 Enterprise Public |
Inoue Rubber and I2 Enterprise Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inoue Rubber and I2 Enterprise
The main advantage of trading using opposite Inoue Rubber and I2 Enterprise positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inoue Rubber position performs unexpectedly, I2 Enterprise 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 I2 Enterprise will offset losses from the drop in I2 Enterprise's long position.| Inoue Rubber vs. AAPICO Hitech Public | Inoue Rubber vs. Haad Thip Public | Inoue Rubber vs. Italian Thai Development Public |
| I2 Enterprise vs. Sabuy Technology Public | I2 Enterprise vs. Kiattana Transport Public | I2 Enterprise vs. Syntec Construction Public | I2 Enterprise vs. Somboon Advance Technology |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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