Correlation Between Feature Integration and Emerging Display

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

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

Diversification Opportunities for Feature Integration and Emerging Display

0.67

Correlation Coefficient

Feature Integration  Emerging Display

Poor diversification

The 3 months correlation between Feature and Emerging is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Feature Integration Technology and Emerging Display Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emerging Display Tec and Feature 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 Feature Integration Technology are associated (or correlated) with Emerging Display. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emerging Display Tec has no effect on the direction of Feature Integration i.e., Feature Integration and Emerging Display go up and down completely randomly.

Pair Corralation between Feature Integration and Emerging Display

Assuming the 90 days trading horizon Feature Integration Technology is expected to generate 1.07 times more return on investment than Emerging Display. However, Feature Integration is 1.07 times more volatile than Emerging Display Technologies. It trades about 0.11 of its potential returns per unit of risk. Emerging Display Technologies is currently generating about 0.08 per unit of risk. If you would invest  7,070  in Feature Integration Technology on December 2, 2024 and sell it today you would earn a total of  730.00  from holding Feature Integration Technology or generate 10.33% return on investment over 90 days.

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

Feature Integration Technology  vs.  Emerging Display Technologies

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 may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Emerging Display Tec

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Emerging Display Technologies are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Emerging Display may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Feature Integration and Emerging Display

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

The idea behind Feature Integration Technology and Emerging Display Technologies 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.