Correlation Between IEI Integration and Aten International
Can any of the company-specific risk be diversified away by investing in both IEI Integration and Aten 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 IEI Integration and Aten International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IEI Integration Corp and Aten International Co, you can compare the effects of market volatilities on IEI Integration and Aten 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 IEI Integration with a short position of Aten International. Check out your portfolio center. Please also check ongoing floating volatility patterns of IEI Integration and Aten International.
Diversification Opportunities for IEI Integration and Aten International
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between IEI and Aten is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding IEI Integration Corp and Aten International Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aten International and IEI Integration 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 IEI Integration Corp are associated (or correlated) with Aten International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aten International has no effect on the direction of IEI Integration i.e., IEI Integration and Aten International go up and down completely randomly.
Pair Corralation between IEI Integration and Aten International
Assuming the 90 days trading horizon IEI Integration Corp is expected to generate 5.33 times more return on investment than Aten International. However, IEI Integration is 5.33 times more volatile than Aten International Co. It trades about 0.46 of its potential returns per unit of risk. Aten International Co is currently generating about 0.16 per unit of risk. If you would invest 7,690 in IEI Integration Corp on December 3, 2024 and sell it today you would earn a total of 3,010 from holding IEI Integration Corp or generate 39.14% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
IEI Integration Corp vs. Aten International Co
Performance |
Timeline |
IEI Integration Corp |
Aten International |
IEI Integration and Aten International Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with IEI Integration and Aten International
The main advantage of trading using opposite IEI Integration and Aten International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IEI Integration position performs unexpectedly, Aten 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 Aten International will offset losses from the drop in Aten International's long position.IEI Integration vs. Advantech Co | IEI Integration vs. Getac Technology Corp | IEI Integration vs. Flytech Technology Co | IEI Integration vs. ADLINK Technology |
Aten International vs. Flytech Technology Co | Aten International vs. Topco Scientific Co | Aten International vs. Chicony Electronics Co | Aten International vs. Advantech 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..
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