Correlation Between Inventec Corp and Poya International

Can any of the company-specific risk be diversified away by investing in both Inventec Corp and Poya International 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 Inventec Corp and Poya International into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Inventec Corp and Poya International Co, you can compare the effects of market volatilities on Inventec Corp and Poya International 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 Inventec Corp with a short position of Poya International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inventec Corp and Poya International.

Diversification Opportunities for Inventec Corp and Poya International

-0.87

Correlation Coefficient

Inventec Corp  Poya International

Pay attention - limited upside

The 3 months correlation between Inventec and Poya is -0.87. Overlapping area represents the amount of risk that can be diversified away by holding Inventec Corp and Poya International Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Poya International and Inventec Corp 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 Inventec Corp are associated (or correlated) with Poya International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Poya International has no effect on the direction of Inventec Corp i.e., Inventec Corp and Poya International go up and down completely randomly.

Pair Corralation between Inventec Corp and Poya International

Assuming the 90 days trading horizon Inventec Corp is expected to under-perform the Poya International. In addition to that, Inventec Corp is 1.7 times more volatile than Poya International Co. It trades about -0.07 of its total potential returns per unit of risk. Poya International Co is currently generating about 0.09 per unit of volatility. If you would invest  48,350  in Poya International Co on September 22, 2024 and sell it today you would earn a total of  950.00  from holding Poya International Co or generate 1.96% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	95.65%
Values	Daily Returns

Inventec Corp  vs.  Poya International Co

Inventec Corp

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Inventec Corp are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Inventec Corp showed solid returns over the last few months and may actually be approaching a breakup point.

Poya International

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Poya International Co has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest abnormal performance, the Stock's basic indicators remain stable and the latest fuss on Wall Street may also be a sign of long-term gains for the venture sophisticated investors.

Pair Trading with Inventec Corp and Poya International

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

The idea behind Inventec Corp and Poya International Co 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.