Correlation Between Integrated Media and Ostin Technology

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

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

Diversification Opportunities for Integrated Media and Ostin Technology

-0.17

Correlation Coefficient

Integrated Media  Ostin Technology

Good diversification

The 3 months correlation between Integrated and Ostin is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Integrated Media Technology and Ostin Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ostin Technology and Integrated Media 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 Integrated Media Technology are associated (or correlated) with Ostin Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ostin Technology has no effect on the direction of Integrated Media i.e., Integrated Media and Ostin Technology go up and down completely randomly.

Pair Corralation between Integrated Media and Ostin Technology

Given the investment horizon of 90 days Integrated Media Technology is expected to generate 5.85 times more return on investment than Ostin Technology. However, Integrated Media is 5.85 times more volatile than Ostin Technology Group. It trades about 0.09 of its potential returns per unit of risk. Ostin Technology Group is currently generating about -0.04 per unit of risk. If you would invest  120.00  in Integrated Media Technology on December 29, 2024 and sell it today you would earn a total of  52.00  from holding Integrated Media Technology or generate 43.33% return on investment over 90 days.

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

Integrated Media Technology  vs.  Ostin Technology Group

Integrated Media Tec

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Integrated Media Technology are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating basic indicators, Integrated Media exhibited solid returns over the last few months and may actually be approaching a breakup point.

Ostin Technology

Risk-Adjusted Performance

Very Weak

Over the last 90 days Ostin Technology Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Integrated Media and Ostin Technology

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

The idea behind Integrated Media Technology and Ostin Technology Group 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.