Correlation Between Ingentec and Promate Electronic
Can any of the company-specific risk be diversified away by investing in both Ingentec and Promate Electronic 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 Promate Electronic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ingentec and Promate Electronic Co, you can compare the effects of market volatilities on Ingentec and Promate Electronic 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 Promate Electronic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ingentec and Promate Electronic.
Diversification Opportunities for Ingentec and Promate Electronic
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ingentec and Promate is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Ingentec and Promate Electronic Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Promate Electronic 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 Promate Electronic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Promate Electronic has no effect on the direction of Ingentec i.e., Ingentec and Promate Electronic go up and down completely randomly.
Pair Corralation between Ingentec and Promate Electronic
Assuming the 90 days trading horizon Ingentec is expected to under-perform the Promate Electronic. In addition to that, Ingentec is 1.26 times more volatile than Promate Electronic Co. It trades about -0.34 of its total potential returns per unit of risk. Promate Electronic Co is currently generating about -0.33 per unit of volatility. If you would invest 8,900 in Promate Electronic Co on September 26, 2024 and sell it today you would lose (860.00) from holding Promate Electronic Co or give up 9.66% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Ingentec vs. Promate Electronic Co
Performance |
Timeline |
Ingentec |
Promate Electronic |
Ingentec and Promate Electronic Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ingentec and Promate Electronic
The main advantage of trading using opposite Ingentec and Promate Electronic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ingentec position performs unexpectedly, Promate Electronic 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 Promate Electronic will offset losses from the drop in Promate Electronic's long position.Ingentec vs. Nan Ya Plastics | Ingentec vs. China Petrochemical Development | Ingentec vs. Eternal Materials Co | Ingentec vs. TSRC Corp |
Promate Electronic vs. Century Wind Power | Promate Electronic vs. Green World Fintech | Promate Electronic vs. Ingentec | Promate Electronic 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
Stocks Directory Find actively traded stocks across global markets | |
Content Syndication Quickly integrate customizable finance content to your own investment portal | |
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |