Correlation Between Coretronic and Xander International
Can any of the company-specific risk be diversified away by investing in both Coretronic and Xander 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 Coretronic and Xander International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coretronic and Xander International, you can compare the effects of market volatilities on Coretronic and Xander 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 Coretronic with a short position of Xander International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coretronic and Xander International.
Diversification Opportunities for Coretronic and Xander International
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Coretronic and Xander is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Coretronic and Xander International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xander International and Coretronic 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 Coretronic are associated (or correlated) with Xander International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xander International has no effect on the direction of Coretronic i.e., Coretronic and Xander International go up and down completely randomly.
Pair Corralation between Coretronic and Xander International
Assuming the 90 days trading horizon Coretronic is expected to generate 1.1 times less return on investment than Xander International. In addition to that, Coretronic is 1.19 times more volatile than Xander International. It trades about 0.15 of its total potential returns per unit of risk. Xander International is currently generating about 0.19 per unit of volatility. If you would invest 2,180 in Xander International on September 16, 2024 and sell it today you would earn a total of 280.00 from holding Xander International or generate 12.84% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Coretronic vs. Xander International
Performance |
Timeline |
Coretronic |
Xander International |
Coretronic and Xander International Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Coretronic and Xander International
The main advantage of trading using opposite Coretronic and Xander International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coretronic position performs unexpectedly, Xander 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 Xander International will offset losses from the drop in Xander International's long position.Coretronic vs. Chicony Power Technology | Coretronic vs. Ruentex Development Co | Coretronic vs. Symtek Automation Asia | Coretronic vs. WiseChip Semiconductor |
Xander International vs. AU Optronics | Xander International vs. Innolux Corp | Xander International vs. Ruentex Development Co | Xander International vs. WiseChip Semiconductor |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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