Correlation Between Thermaltake Technology and Ingentec

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Can any of the company-specific risk be diversified away by investing in both Thermaltake Technology and Ingentec 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 Thermaltake Technology and Ingentec into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thermaltake Technology Co and Ingentec, you can compare the effects of market volatilities on Thermaltake Technology and Ingentec 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 Thermaltake Technology with a short position of Ingentec. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thermaltake Technology and Ingentec.

Diversification Opportunities for Thermaltake Technology and Ingentec

ThermaltakeIngentecDiversified AwayThermaltakeIngentecDiversified Away100%
0.64
  Correlation Coefficient

Poor diversification

The 3 months correlation between Thermaltake and Ingentec is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Thermaltake Technology Co and Ingentec in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ingentec and Thermaltake 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 Thermaltake Technology Co are associated (or correlated) with Ingentec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ingentec has no effect on the direction of Thermaltake Technology i.e., Thermaltake Technology and Ingentec go up and down completely randomly.

Pair Corralation between Thermaltake Technology and Ingentec

Assuming the 90 days trading horizon Thermaltake Technology Co is expected to generate 1.0 times more return on investment than Ingentec. However, Thermaltake Technology Co is 1.0 times less risky than Ingentec. It trades about -0.06 of its potential returns per unit of risk. Ingentec is currently generating about -0.12 per unit of risk. If you would invest  3,710  in Thermaltake Technology Co on October 31, 2024 and sell it today you would lose (310.00) from holding Thermaltake Technology Co or give up 8.36% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Thermaltake Technology Co  vs.  Ingentec

 Performance 
JavaScript chart by amCharts 3.21.15NovDec2025 -25-20-15-10-505
JavaScript chart by amCharts 3.21.153540 4768
       Timeline  
Thermaltake Technology 

Risk-Adjusted Performance

0 of 100

 
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Over the last 90 days Thermaltake Technology 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.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan3436384042
Ingentec 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Ingentec has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in March 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan170180190200210

Thermaltake Technology and Ingentec Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-3.19-2.41-1.62-0.84-0.05320.671.392.122.843.56 0.060.070.080.090.100.11
JavaScript chart by amCharts 3.21.153540 4768
       Returns  

Pair Trading with Thermaltake Technology and Ingentec

The main advantage of trading using opposite Thermaltake Technology and Ingentec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thermaltake Technology position performs unexpectedly, Ingentec 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 Ingentec will offset losses from the drop in Ingentec's long position.
The idea behind Thermaltake Technology Co and Ingentec 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.

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