Correlation Between Corning Incorporated and Electronic Systems
Can any of the company-specific risk be diversified away by investing in both Corning Incorporated and Electronic Systems 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 Corning Incorporated and Electronic Systems into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Corning Incorporated and Electronic Systems Technology, you can compare the effects of market volatilities on Corning Incorporated and Electronic Systems 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 Corning Incorporated with a short position of Electronic Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of Corning Incorporated and Electronic Systems.
Diversification Opportunities for Corning Incorporated and Electronic Systems
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Corning and Electronic is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Corning Incorporated and Electronic Systems Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Electronic Systems and Corning Incorporated 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 Corning Incorporated are associated (or correlated) with Electronic Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Electronic Systems has no effect on the direction of Corning Incorporated i.e., Corning Incorporated and Electronic Systems go up and down completely randomly.
Pair Corralation between Corning Incorporated and Electronic Systems
Considering the 90-day investment horizon Corning Incorporated is expected to generate 0.49 times more return on investment than Electronic Systems. However, Corning Incorporated is 2.02 times less risky than Electronic Systems. It trades about -0.1 of its potential returns per unit of risk. Electronic Systems Technology is currently generating about -0.2 per unit of risk. If you would invest 3,231 in Corning Incorporated on January 26, 2024 and sell it today you would lose (79.00) from holding Corning Incorporated or give up 2.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Corning Incorporated vs. Electronic Systems Technology
Performance |
| Timeline |
| Corning Incorporated |
| Electronic Systems |
Corning Incorporated and Electronic Systems Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Corning Incorporated and Electronic Systems
The main advantage of trading using opposite Corning Incorporated and Electronic Systems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Corning Incorporated position performs unexpectedly, Electronic Systems 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 Electronic Systems will offset losses from the drop in Electronic Systems' long position.| Corning Incorporated vs. OSI Systems | Corning Incorporated vs. Fabrinet | Corning Incorporated vs. Jabil Circuit | Corning Incorporated vs. Vicor |
| Electronic Systems vs. Mojo Data Solutions | Electronic Systems vs. TrackX Holdings | Electronic Systems vs. Maptelligent | Electronic Systems vs. Obocon Inc |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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