Correlation Between De Licacy and Feature Integration

Can any of the company-specific risk be diversified away by investing in both De Licacy and Feature Integration 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 De Licacy and Feature Integration into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between De Licacy Industrial and Feature Integration Technology, you can compare the effects of market volatilities on De Licacy and Feature Integration 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 De Licacy with a short position of Feature Integration. Check out your portfolio center. Please also check ongoing floating volatility patterns of De Licacy and Feature Integration.

Diversification Opportunities for De Licacy and Feature Integration

0.84

Correlation Coefficient

De Licacy  Feature Integration

Very poor diversification

The 3 months correlation between 1464 and Feature is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding De Licacy Industrial and Feature Integration Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Feature Integration and De Licacy 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 De Licacy Industrial are associated (or correlated) with Feature Integration. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Feature Integration has no effect on the direction of De Licacy i.e., De Licacy and Feature Integration go up and down completely randomly.

Pair Corralation between De Licacy and Feature Integration

Assuming the 90 days trading horizon De Licacy Industrial is expected to generate 1.01 times more return on investment than Feature Integration. However, De Licacy is 1.01 times more volatile than Feature Integration Technology. It trades about 0.14 of its potential returns per unit of risk. Feature Integration Technology is currently generating about 0.11 per unit of risk. If you would invest  1,650  in De Licacy Industrial on December 28, 2024 and sell it today you would earn a total of  235.00  from holding De Licacy Industrial or generate 14.24% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	100.0%
Values	Daily Returns

De Licacy Industrial  vs.  Feature Integration Technology

De Licacy Industrial

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in De Licacy Industrial are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, De Licacy showed solid returns over the last few months and may actually be approaching a breakup point.

Feature Integration

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Feature Integration Technology are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Feature Integration showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with De Licacy and Feature Integration

The main advantage of trading using opposite De Licacy and Feature Integration positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if De Licacy position performs unexpectedly, Feature Integration 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 Feature Integration will offset losses from the drop in Feature Integration's long position.

The idea behind De Licacy Industrial and Feature Integration Technology pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.