Correlation Between Ingentec and Lite On
Can any of the company-specific risk be diversified away by investing in both Ingentec and Lite On 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 Ingentec and Lite On into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ingentec and Lite On Technology Corp, you can compare the effects of market volatilities on Ingentec and Lite On 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 Ingentec with a short position of Lite On. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ingentec and Lite On.
Diversification Opportunities for Ingentec and Lite On
Good diversification
The 3 months correlation between Ingentec and Lite is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Ingentec and Lite On Technology Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lite On Technology and Ingentec 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 Ingentec are associated (or correlated) with Lite On. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lite On Technology has no effect on the direction of Ingentec i.e., Ingentec and Lite On go up and down completely randomly.
Pair Corralation between Ingentec and Lite On
Assuming the 90 days trading horizon Ingentec is expected to under-perform the Lite On. In addition to that, Ingentec is 1.36 times more volatile than Lite On Technology Corp. It trades about -0.2 of its total potential returns per unit of risk. Lite On Technology Corp is currently generating about 0.01 per unit of volatility. If you would invest 10,000 in Lite On Technology Corp on September 26, 2024 and sell it today you would earn a total of 50.00 from holding Lite On Technology Corp or generate 0.5% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Ingentec vs. Lite On Technology Corp
Performance |
Timeline |
Ingentec |
Lite On Technology |
Ingentec and Lite On Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ingentec and Lite On
The main advantage of trading using opposite Ingentec and Lite On positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ingentec position performs unexpectedly, Lite On 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 Lite On will offset losses from the drop in Lite On's long position.Ingentec vs. Nan Ya Plastics | Ingentec vs. China Petrochemical Development | Ingentec vs. Eternal Materials Co | Ingentec vs. TSRC Corp |
Lite On vs. Century Wind Power | Lite On vs. Green World Fintech | Lite On vs. Ingentec | Lite On vs. Chaheng Precision 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
Fundamental Analysis View fundamental data based on most recent published financial statements | |
Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
FinTech Suite Use AI to screen and filter profitable investment opportunities | |
Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |