Correlation Between Raketech Group and I Tech
Can any of the company-specific risk be diversified away by investing in both Raketech Group and I Tech 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 Raketech Group and I Tech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Raketech Group Holding and I Tech, you can compare the effects of market volatilities on Raketech Group and I Tech 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 Raketech Group with a short position of I Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Raketech Group and I Tech.
Diversification Opportunities for Raketech Group and I Tech
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Raketech and ITECH is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Raketech Group Holding and I Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on I Tech and Raketech Group 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 Raketech Group Holding are associated (or correlated) with I Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of I Tech has no effect on the direction of Raketech Group i.e., Raketech Group and I Tech go up and down completely randomly.
Pair Corralation between Raketech Group and I Tech
Assuming the 90 days trading horizon Raketech Group Holding is expected to under-perform the I Tech. In addition to that, Raketech Group is 2.93 times more volatile than I Tech. It trades about -0.25 of its total potential returns per unit of risk. I Tech is currently generating about -0.12 per unit of volatility. If you would invest 4,820 in I Tech on August 27, 2024 and sell it today you would lose (300.00) from holding I Tech or give up 6.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Raketech Group Holding vs. I Tech
Performance |
| Timeline |
| Raketech Group Holding |
| I Tech |
Raketech Group and I Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Raketech Group and I Tech
The main advantage of trading using opposite Raketech Group and I Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Raketech Group position performs unexpectedly, I Tech 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 I Tech will offset losses from the drop in I Tech's long position.| 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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