Correlation Between Flexium Interconnect and Powertech Technology
Can any of the company-specific risk be diversified away by investing in both Flexium Interconnect and Powertech Technology 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 Flexium Interconnect and Powertech Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Flexium Interconnect and Powertech Technology, you can compare the effects of market volatilities on Flexium Interconnect and Powertech Technology 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 Flexium Interconnect with a short position of Powertech Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flexium Interconnect and Powertech Technology.
Diversification Opportunities for Flexium Interconnect and Powertech Technology
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Flexium and Powertech is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Flexium Interconnect and Powertech Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Powertech Technology and Flexium Interconnect 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 Flexium Interconnect are associated (or correlated) with Powertech Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Powertech Technology has no effect on the direction of Flexium Interconnect i.e., Flexium Interconnect and Powertech Technology go up and down completely randomly.
Pair Corralation between Flexium Interconnect and Powertech Technology
Assuming the 90 days trading horizon Flexium Interconnect is expected to under-perform the Powertech Technology. In addition to that, Flexium Interconnect is 1.57 times more volatile than Powertech Technology. It trades about -0.28 of its total potential returns per unit of risk. Powertech Technology is currently generating about -0.15 per unit of volatility. If you would invest 12,750 in Powertech Technology on September 7, 2024 and sell it today you would lose (600.00) from holding Powertech Technology or give up 4.71% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Flexium Interconnect vs. Powertech Technology
Performance |
Timeline |
Flexium Interconnect |
Powertech Technology |
Flexium Interconnect and Powertech Technology Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Flexium Interconnect and Powertech Technology
The main advantage of trading using opposite Flexium Interconnect and Powertech Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flexium Interconnect position performs unexpectedly, Powertech Technology 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 Powertech Technology will offset losses from the drop in Powertech Technology's long position.Flexium Interconnect vs. Charoen Pokphand Enterprise | Flexium Interconnect vs. Taiwan Secom Co | Flexium Interconnect vs. Grape King Bio | Flexium Interconnect vs. Ruentex Development Co |
Powertech Technology vs. Novatek Microelectronics Corp | Powertech Technology vs. King Yuan Electronics | Powertech Technology vs. Realtek Semiconductor Corp | Powertech Technology vs. Nanya Technology Corp |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |