Correlation Between Great Computer and Inmax Holding

Can any of the company-specific risk be diversified away by investing in both Great Computer and Inmax Holding 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 Great Computer and Inmax Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Great Computer and Inmax Holding Co, you can compare the effects of market volatilities on Great Computer and Inmax Holding 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 Great Computer with a short position of Inmax Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Great Computer and Inmax Holding.

Diversification Opportunities for Great Computer and Inmax Holding

-0.1

Correlation Coefficient

Great Computer  Inmax Holding

Good diversification

The 3 months correlation between Great and Inmax is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Great Computer and Inmax Holding Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inmax Holding and Great Computer 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 Great Computer are associated (or correlated) with Inmax Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inmax Holding has no effect on the direction of Great Computer i.e., Great Computer and Inmax Holding go up and down completely randomly.

Pair Corralation between Great Computer and Inmax Holding

Assuming the 90 days trading horizon Great Computer is expected to generate 1.21 times more return on investment than Inmax Holding. However, Great Computer is 1.21 times more volatile than Inmax Holding Co. It trades about 0.04 of its potential returns per unit of risk. Inmax Holding Co is currently generating about -0.1 per unit of risk. If you would invest  1,810  in Great Computer on December 5, 2024 and sell it today you would earn a total of  35.00  from holding Great Computer or generate 1.93% return on investment over 90 days.

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

Great Computer  vs.  Inmax Holding Co

Great Computer

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Great Computer are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable basic indicators, Great Computer is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Inmax Holding

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Inmax Holding Co are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable basic indicators, Inmax Holding is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Great Computer and Inmax Holding

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

The idea behind Great Computer and Inmax Holding Co 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.