Correlation Between EMemory Technology and FineTek
Can any of the company-specific risk be diversified away by investing in both EMemory Technology and FineTek 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 EMemory Technology and FineTek into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between eMemory Technology and FineTek Co, you can compare the effects of market volatilities on EMemory Technology and FineTek 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 EMemory Technology with a short position of FineTek. Check out your portfolio center. Please also check ongoing floating volatility patterns of EMemory Technology and FineTek.
Diversification Opportunities for EMemory Technology and FineTek
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between EMemory and FineTek is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding eMemory Technology and FineTek Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FineTek and EMemory 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 eMemory Technology are associated (or correlated) with FineTek. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FineTek has no effect on the direction of EMemory Technology i.e., EMemory Technology and FineTek go up and down completely randomly.
Pair Corralation between EMemory Technology and FineTek
Assuming the 90 days trading horizon eMemory Technology is expected to generate 1.06 times more return on investment than FineTek. However, EMemory Technology is 1.06 times more volatile than FineTek Co. It trades about 0.15 of its potential returns per unit of risk. FineTek Co is currently generating about 0.02 per unit of risk. If you would invest 236,000 in eMemory Technology on September 13, 2024 and sell it today you would earn a total of 77,500 from holding eMemory Technology or generate 32.84% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
eMemory Technology vs. FineTek Co
Performance |
Timeline |
eMemory Technology |
FineTek |
EMemory Technology and FineTek Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with EMemory Technology and FineTek
The main advantage of trading using opposite EMemory Technology and FineTek positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EMemory Technology position performs unexpectedly, FineTek 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 FineTek will offset losses from the drop in FineTek's long position.EMemory Technology vs. Nan Ya Printed | EMemory Technology vs. Global Unichip Corp | EMemory Technology vs. Aspeed Technology | EMemory Technology vs. Alchip Technologies |
FineTek vs. Integrated Service Technology | FineTek vs. ASE Industrial Holding | FineTek vs. eMemory Technology | FineTek vs. Ruentex Development Co |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |