Correlation Between SigmaTron International and Integrated Media
Can any of the company-specific risk be diversified away by investing in both SigmaTron International and Integrated Media 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 SigmaTron International and Integrated Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SigmaTron International and Integrated Media Technology, you can compare the effects of market volatilities on SigmaTron International and Integrated Media 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 SigmaTron International with a short position of Integrated Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of SigmaTron International and Integrated Media.
Diversification Opportunities for SigmaTron International and Integrated Media
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between SigmaTron and Integrated is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding SigmaTron International and Integrated Media Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Integrated Media Tec and SigmaTron International 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 SigmaTron International are associated (or correlated) with Integrated Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Integrated Media Tec has no effect on the direction of SigmaTron International i.e., SigmaTron International and Integrated Media go up and down completely randomly.
Pair Corralation between SigmaTron International and Integrated Media
Given the investment horizon of 90 days SigmaTron International is expected to generate 0.49 times more return on investment than Integrated Media. However, SigmaTron International is 2.02 times less risky than Integrated Media. It trades about -0.06 of its potential returns per unit of risk. Integrated Media Technology is currently generating about -0.28 per unit of risk. If you would invest 283.00 in SigmaTron International on August 27, 2024 and sell it today you would lose (13.00) from holding SigmaTron International or give up 4.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SigmaTron International vs. Integrated Media Technology
Performance |
| Timeline |
| SigmaTron International |
| Integrated Media Tec |
SigmaTron International and Integrated Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SigmaTron International and Integrated Media
The main advantage of trading using opposite SigmaTron International and Integrated Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SigmaTron International position performs unexpectedly, Integrated Media 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 Integrated Media will offset losses from the drop in Integrated Media's long position.| SigmaTron International vs. Integrated Media Technology | SigmaTron International vs. Data IO | SigmaTron International vs. Research Frontiers Incorporated | SigmaTron International vs. Maris Tech |
| Integrated Media vs. SigmaTron International | Integrated Media vs. Data IO | Integrated Media vs. Research Frontiers Incorporated | Integrated Media vs. Maris Tech |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |