Correlation Between Curtis Mathes and Ionix Technology

Can any of the company-specific risk be diversified away by investing in both Curtis Mathes and Ionix Technology 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 Curtis Mathes and Ionix Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Curtis Mathes Corp and Ionix Technology, you can compare the effects of market volatilities on Curtis Mathes and Ionix Technology 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 Curtis Mathes with a short position of Ionix Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Curtis Mathes and Ionix Technology.

Diversification Opportunities for Curtis Mathes and Ionix Technology

0.0

Correlation Coefficient

Curtis Mathes  Ionix Technology

Pay attention - limited upside

The 3 months correlation between Curtis and Ionix is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Curtis Mathes Corp and Ionix Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ionix Technology and Curtis Mathes 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 Curtis Mathes Corp are associated (or correlated) with Ionix Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ionix Technology has no effect on the direction of Curtis Mathes i.e., Curtis Mathes and Ionix Technology go up and down completely randomly.

Pair Corralation between Curtis Mathes and Ionix Technology

If you would invest  0.01  in Curtis Mathes Corp on December 27, 2024 and sell it today you would earn a total of  0.01  from holding Curtis Mathes Corp or generate 100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Curtis Mathes Corp  vs.  Ionix Technology

Curtis Mathes Corp

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Curtis Mathes Corp are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak fundamental indicators, Curtis Mathes showed solid returns over the last few months and may actually be approaching a breakup point.

Ionix Technology

Risk-Adjusted Performance

Very Weak

Over the last 90 days Ionix Technology has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Ionix Technology is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Curtis Mathes and Ionix Technology

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

The idea behind Curtis Mathes Corp and Ionix Technology 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.