Correlation Between Transphorm Technology and InTest
Can any of the company-specific risk be diversified away by investing in both Transphorm Technology and InTest 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 Transphorm Technology and InTest into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Transphorm Technology and inTest, you can compare the effects of market volatilities on Transphorm Technology and InTest 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 Transphorm Technology with a short position of InTest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Transphorm Technology and InTest.
Diversification Opportunities for Transphorm Technology and InTest
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Transphorm and InTest is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Transphorm Technology and inTest in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on inTest and Transphorm Technology 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 Transphorm Technology are associated (or correlated) with InTest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of inTest has no effect on the direction of Transphorm Technology i.e., Transphorm Technology and InTest go up and down completely randomly.
Pair Corralation between Transphorm Technology and InTest
If you would invest 777.00 in inTest on October 25, 2024 and sell it today you would earn a total of 160.00 from holding inTest or generate 20.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 2.56% |
| Values | Daily Returns |
Transphorm Technology vs. inTest
Performance |
| Timeline |
| Transphorm Technology |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| inTest |
Transphorm Technology and InTest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Transphorm Technology and InTest
The main advantage of trading using opposite Transphorm Technology and InTest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Transphorm Technology position performs unexpectedly, InTest 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 InTest will offset losses from the drop in InTest's long position.| Transphorm Technology vs. Sumco Corp ADR | Transphorm Technology vs. Lasertec | Transphorm Technology vs. Asm Pacific Technology | Transphorm Technology vs. Disco Corp ADR |
| InTest vs. Axcelis Technologies | InTest vs. Lam Research Corp | InTest vs. Photronics | InTest vs. indie Semiconductor |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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