Correlation Between Iteris and Wialan Technologies
Can any of the company-specific risk be diversified away by investing in both Iteris and Wialan Technologies 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 Iteris and Wialan Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Iteris Inc and Wialan Technologies, you can compare the effects of market volatilities on Iteris and Wialan Technologies 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 Iteris with a short position of Wialan Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Iteris and Wialan Technologies.
Diversification Opportunities for Iteris and Wialan Technologies
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Iteris and Wialan is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Iteris Inc and Wialan Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wialan Technologies and Iteris 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 Iteris Inc are associated (or correlated) with Wialan Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wialan Technologies has no effect on the direction of Iteris i.e., Iteris and Wialan Technologies go up and down completely randomly.
Pair Corralation between Iteris and Wialan Technologies
Considering the 90-day investment horizon Iteris Inc is expected to generate 0.62 times more return on investment than Wialan Technologies. However, Iteris Inc is 1.62 times less risky than Wialan Technologies. It trades about 0.45 of its potential returns per unit of risk. Wialan Technologies is currently generating about -0.09 per unit of risk. If you would invest 22,788 in Iteris Inc on September 2, 2024 and sell it today you would earn a total of 3,861 from holding Iteris Inc or generate 16.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 28.57% |
| Values | Daily Returns |
Iteris Inc vs. Wialan Technologies
Performance |
| Timeline |
| Iteris Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
| Wialan Technologies |
Iteris and Wialan Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Iteris and Wialan Technologies
The main advantage of trading using opposite Iteris and Wialan Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Iteris position performs unexpectedly, Wialan Technologies 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 Wialan Technologies will offset losses from the drop in Wialan Technologies' long position.| Iteris vs. Optical Cable | Iteris vs. KVH Industries | Iteris vs. Knowles Cor | Iteris vs. Comtech Telecommunications Corp |
| Wialan Technologies vs. Baylin Technologies | Wialan Technologies vs. Viavi Solutions | Wialan Technologies vs. SatixFy Communications | Wialan Technologies vs. Electronic Systems 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |