Correlation Between SigmaTron International and EMagin
Can any of the company-specific risk be diversified away by investing in both SigmaTron International and EMagin 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 SigmaTron International and EMagin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SigmaTron International and EMagin, you can compare the effects of market volatilities on SigmaTron International and EMagin 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 SigmaTron International with a short position of EMagin. Check out your portfolio center. Please also check ongoing floating volatility patterns of SigmaTron International and EMagin.
Diversification Opportunities for SigmaTron International and EMagin
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between SigmaTron and EMagin is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding SigmaTron International and EMagin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EMagin and SigmaTron International 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 SigmaTron International are associated (or correlated) with EMagin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EMagin has no effect on the direction of SigmaTron International i.e., SigmaTron International and EMagin go up and down completely randomly.
Pair Corralation between SigmaTron International and EMagin
If you would invest 200.00 in EMagin on September 17, 2024 and sell it today you would earn a total of 0.00 from holding EMagin or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 1.56% |
Values | Daily Returns |
SigmaTron International vs. EMagin
Performance |
Timeline |
SigmaTron International |
EMagin |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
SigmaTron International and EMagin Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with SigmaTron International and EMagin
The main advantage of trading using opposite SigmaTron International and EMagin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SigmaTron International position performs unexpectedly, EMagin 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 EMagin will offset losses from the drop in EMagin's long position.SigmaTron International vs. IONQ Inc | ||
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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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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