Correlation Between STI Education and Integrated Micro
Can any of the company-specific risk be diversified away by investing in both STI Education and Integrated Micro 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 STI Education and Integrated Micro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between STI Education Systems and Integrated Micro Electronics, you can compare the effects of market volatilities on STI Education and Integrated Micro 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 STI Education with a short position of Integrated Micro. Check out your portfolio center. Please also check ongoing floating volatility patterns of STI Education and Integrated Micro.
Diversification Opportunities for STI Education and Integrated Micro
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between STI and Integrated is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding STI Education Systems and Integrated Micro Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Integrated Micro Ele and STI Education 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 STI Education Systems are associated (or correlated) with Integrated Micro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Integrated Micro Ele has no effect on the direction of STI Education i.e., STI Education and Integrated Micro go up and down completely randomly.
Pair Corralation between STI Education and Integrated Micro
Assuming the 90 days trading horizon STI Education Systems is expected to generate 0.95 times more return on investment than Integrated Micro. However, STI Education Systems is 1.05 times less risky than Integrated Micro. It trades about 0.14 of its potential returns per unit of risk. Integrated Micro Electronics is currently generating about -0.08 per unit of risk. If you would invest 29.00 in STI Education Systems on August 25, 2024 and sell it today you would earn a total of 99.00 from holding STI Education Systems or generate 341.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.37% |
| Values | Daily Returns |
STI Education Systems vs. Integrated Micro Electronics
Performance |
| Timeline |
| STI Education Systems |
| Integrated Micro Ele |
STI Education and Integrated Micro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with STI Education and Integrated Micro
The main advantage of trading using opposite STI Education and Integrated Micro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if STI Education position performs unexpectedly, Integrated Micro 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 Micro will offset losses from the drop in Integrated Micro's long position.| STI Education vs. Allhome Corp | STI Education vs. Altus Property Ventures | STI Education vs. AgriNurture | STI Education vs. Wilcon Depot |
| Integrated Micro vs. Security Bank Corp | Integrated Micro vs. STI Education Systems | Integrated Micro vs. Metropolitan Bank Trust | Integrated Micro vs. Semirara Mining Corp |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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