Correlation Between Getac Technology and InnoDisk
Can any of the company-specific risk be diversified away by investing in both Getac Technology and InnoDisk 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 Getac Technology and InnoDisk into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Getac Technology Corp and InnoDisk, you can compare the effects of market volatilities on Getac Technology and InnoDisk 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 Getac Technology with a short position of InnoDisk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Getac Technology and InnoDisk.
Diversification Opportunities for Getac Technology and InnoDisk
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Getac and InnoDisk is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Getac Technology Corp and InnoDisk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on InnoDisk and Getac Technology 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 Getac Technology Corp are associated (or correlated) with InnoDisk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of InnoDisk has no effect on the direction of Getac Technology i.e., Getac Technology and InnoDisk go up and down completely randomly.
Pair Corralation between Getac Technology and InnoDisk
Assuming the 90 days trading horizon Getac Technology Corp is expected to generate 1.41 times more return on investment than InnoDisk. However, Getac Technology is 1.41 times more volatile than InnoDisk. It trades about 0.06 of its potential returns per unit of risk. InnoDisk is currently generating about -0.04 per unit of risk. If you would invest 7,440 in Getac Technology Corp on September 24, 2024 and sell it today you would earn a total of 3,160 from holding Getac Technology Corp or generate 42.47% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Getac Technology Corp vs. InnoDisk
Performance |
Timeline |
Getac Technology Corp |
InnoDisk |
Getac Technology and InnoDisk Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Getac Technology and InnoDisk
The main advantage of trading using opposite Getac Technology and InnoDisk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Getac Technology position performs unexpectedly, InnoDisk 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 InnoDisk will offset losses from the drop in InnoDisk's long position.Getac Technology vs. Century Wind Power | Getac Technology vs. Green World Fintech | Getac Technology vs. Ingentec | Getac Technology vs. Chaheng Precision Co |
InnoDisk vs. Quanta Computer | InnoDisk vs. Wiwynn Corp | InnoDisk vs. Getac Technology Corp | InnoDisk vs. VIA Labs |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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