Correlation Between Teradyne and Volcan
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By analyzing existing cross correlation between Teradyne and Volcan Compania Minera, you can compare the effects of market volatilities on Teradyne and Volcan 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 Teradyne with a short position of Volcan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Teradyne and Volcan.
Diversification Opportunities for Teradyne and Volcan
Good diversification
The 3 months correlation between Teradyne and Volcan is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Teradyne and Volcan Compania Minera in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Volcan Compania Minera and Teradyne 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 Teradyne are associated (or correlated) with Volcan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Volcan Compania Minera has no effect on the direction of Teradyne i.e., Teradyne and Volcan go up and down completely randomly.
Pair Corralation between Teradyne and Volcan
Considering the 90-day investment horizon Teradyne is expected to generate 0.48 times more return on investment than Volcan. However, Teradyne is 2.09 times less risky than Volcan. It trades about 0.35 of its potential returns per unit of risk. Volcan Compania Minera is currently generating about -0.43 per unit of risk. If you would invest 10,640 in Teradyne on September 15, 2024 and sell it today you would earn a total of 1,682 from holding Teradyne or generate 15.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 38.1% |
| Values | Daily Returns |
Teradyne vs. Volcan Compania Minera
Performance |
| Timeline |
| Teradyne |
| Volcan Compania Minera |
Teradyne and Volcan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Teradyne and Volcan
The main advantage of trading using opposite Teradyne and Volcan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Teradyne position performs unexpectedly, Volcan 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 Volcan will offset losses from the drop in Volcan's long position.| Teradyne vs. IPG Photonics | Teradyne vs. Ultra Clean Holdings | Teradyne vs. Onto Innovation | Teradyne vs. Cohu Inc |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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