Correlation Between Robinsons Retail and Integrated Micro

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

By analyzing existing cross correlation between Robinsons Retail Holdings and Integrated Micro Electronics, you can compare the effects of market volatilities on Robinsons Retail and Integrated Micro 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 Robinsons Retail with a short position of Integrated Micro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Robinsons Retail and Integrated Micro.

Diversification Opportunities for Robinsons Retail and Integrated Micro

-0.22

Correlation Coefficient

Robinsons Retail  Integrated Micro

Very good diversification

The 3 months correlation between Robinsons and Integrated is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Robinsons Retail Holdings and Integrated Micro Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Integrated Micro Ele and Robinsons Retail 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 Robinsons Retail Holdings are associated (or correlated) with Integrated Micro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Integrated Micro Ele has no effect on the direction of Robinsons Retail i.e., Robinsons Retail and Integrated Micro go up and down completely randomly.

Pair Corralation between Robinsons Retail and Integrated Micro

Assuming the 90 days trading horizon Robinsons Retail is expected to generate 1.56 times less return on investment than Integrated Micro. But when comparing it to its historical volatility, Robinsons Retail Holdings is 2.28 times less risky than Integrated Micro. It trades about 0.07 of its potential returns per unit of risk. Integrated Micro Electronics is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  218.00  in Integrated Micro Electronics on April 23, 2025 and sell it today you would earn a total of  15.00  from holding Integrated Micro Electronics or generate 6.88% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.36%
Values	Daily Returns

Robinsons Retail Holdings  vs.  Integrated Micro Electronics

Robinsons Retail Holdings

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Robinsons Retail Holdings are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Robinsons Retail may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Integrated Micro Ele

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Integrated Micro Electronics are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady technical and fundamental indicators, Integrated Micro may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Robinsons Retail and Integrated Micro

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

The idea behind Robinsons Retail Holdings and Integrated Micro Electronics 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.