Information Technology Correlations

6697 Stock   43.50  0.50  1.16%   
The current 90-days correlation between Information Technology and Green World Fintech is 0.24 (i.e., Modest diversification). The correlation of Information Technology is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak. If the correlation is 0, the equities are not correlated; they are entirely random.

Information Technology Correlation With Market

Weak diversification

The correlation between Information Technology Total and DJI is 0.35 (i.e., Weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Information Technology Total and DJI in the same portfolio, assuming nothing else is changed.
  
The ability to find closely correlated positions to Information Technology could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Information Technology when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Information Technology - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Information Technology Total to buy it.

Moving together with Information Stock

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  0.922453 Syscom Computer EngiPairCorr
  0.898099 Tatung System TechnoPairCorr
  0.892471 Ares International CorpPairCorr
  0.652330 Taiwan SemiconductorPairCorr
  0.92317 Hon Hai PrecisionPairCorr
  0.863711 ASE Industrial HoldingPairCorr
  0.82454 MediaTekPairCorr
  0.651303 Nan Ya PlasticsPairCorr
  0.690050 YuantaP shares TaiwanPairCorr
  0.810053 YuantaP shares TaiwanPairCorr
  0.850051 YuantaP shares TaiwanPairCorr
  0.750057 Fubon MSCI TaiwanPairCorr

Moving against Information Stock

  0.566763 Green World Fintech SplitPairCorr
  0.42603 Evergreen Marine CorpPairCorr
  0.322615 Wan Hai LinesPairCorr

Related Correlations Analysis

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Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.
High positive correlations   
24712453
  
High negative correlations   
24716763
24536763

Risk-Adjusted Indicators

There is a big difference between Information Stock performing well and Information Technology Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Information Technology's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

Be your own money manager

Our tools can tell you how much better you can do entering a position in Information Technology without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

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