Correlation Between I Tech and Raketech Group
Can any of the company-specific risk be diversified away by investing in both I Tech and Raketech Group 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 I Tech and Raketech Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between I Tech and Raketech Group Holding, you can compare the effects of market volatilities on I Tech and Raketech Group 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 I Tech with a short position of Raketech Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of I Tech and Raketech Group.
Diversification Opportunities for I Tech and Raketech Group
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ITECH and Raketech is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding I Tech and Raketech Group Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Raketech Group Holding and I Tech 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 I Tech are associated (or correlated) with Raketech Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Raketech Group Holding has no effect on the direction of I Tech i.e., I Tech and Raketech Group go up and down completely randomly.
Pair Corralation between I Tech and Raketech Group
Assuming the 90 days trading horizon I Tech is expected to generate 0.84 times more return on investment than Raketech Group. However, I Tech is 1.19 times less risky than Raketech Group. It trades about 0.0 of its potential returns per unit of risk. Raketech Group Holding is currently generating about -0.14 per unit of risk. If you would invest 5,250 in I Tech on August 30, 2024 and sell it today you would lose (350.00) from holding I Tech or give up 6.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
I Tech vs. Raketech Group Holding
Performance |
| Timeline |
| I Tech |
| Raketech Group Holding |
I Tech and Raketech Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with I Tech and Raketech Group
The main advantage of trading using opposite I Tech and Raketech Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if I Tech position performs unexpectedly, Raketech Group 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 Raketech Group will offset losses from the drop in Raketech Group's long position.The idea behind I Tech and Raketech Group Holding pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Raketech Group vs. Catena Media plc | Raketech Group vs. Better Collective | Raketech Group vs. Betsson AB | Raketech Group vs. Kambi Group PLC |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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