Correlation Between VistaREIT and Integrated Micro

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

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

Diversification Opportunities for VistaREIT and Integrated Micro

-0.06

Correlation Coefficient

VistaREIT  Integrated Micro

Good diversification

The 3 months correlation between VistaREIT and Integrated is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding VistaREIT 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 VistaREIT 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 VistaREIT 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 VistaREIT i.e., VistaREIT and Integrated Micro go up and down completely randomly.

Pair Corralation between VistaREIT and Integrated Micro

Assuming the 90 days trading horizon VistaREIT is expected to under-perform the Integrated Micro. But the stock apears to be less risky and, when comparing its historical volatility, VistaREIT is 6.4 times less risky than Integrated Micro. The stock trades about -0.05 of its potential returns per unit of risk. The Integrated Micro Electronics is currently generating about 0.35 of returns per unit of risk over similar time horizon. If you would invest  188.00  in Integrated Micro Electronics on April 22, 2025 and sell it today you would earn a total of  46.00  from holding Integrated Micro Electronics or generate 24.47% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	95.45%
Values	Daily Returns

VistaREIT  vs.  Integrated Micro Electronics

VistaREIT

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in VistaREIT are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable technical and fundamental indicators, VistaREIT is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Integrated Micro Ele

Risk-Adjusted Performance

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Integrated Micro Electronics are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound technical and fundamental indicators, Integrated Micro is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with VistaREIT and Integrated Micro

The main advantage of trading using opposite VistaREIT and Integrated Micro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VistaREIT 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 VistaREIT 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.