Correlation Between Inari Amertron and M N
Can any of the company-specific risk be diversified away by investing in both Inari Amertron and M N 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 Inari Amertron and M N into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inari Amertron Bhd and M N C, you can compare the effects of market volatilities on Inari Amertron and M N 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 Inari Amertron with a short position of M N. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inari Amertron and M N.
Diversification Opportunities for Inari Amertron and M N
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Inari and 0103 is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Inari Amertron Bhd and M N C in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on M N C and Inari Amertron 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 Inari Amertron Bhd are associated (or correlated) with M N. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of M N C has no effect on the direction of Inari Amertron i.e., Inari Amertron and M N go up and down completely randomly.
Pair Corralation between Inari Amertron and M N
Assuming the 90 days trading horizon Inari Amertron is expected to generate 8.02 times less return on investment than M N. But when comparing it to its historical volatility, Inari Amertron Bhd is 3.68 times less risky than M N. It trades about 0.03 of its potential returns per unit of risk. M N C is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 8.50 in M N C on October 15, 2024 and sell it today you would earn a total of 1.00 from holding M N C or generate 11.76% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Inari Amertron Bhd vs. M N C
Performance |
Timeline |
Inari Amertron Bhd |
M N C |
Inari Amertron and M N Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Inari Amertron and M N
The main advantage of trading using opposite Inari Amertron and M N positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inari Amertron position performs unexpectedly, M N 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 M N will offset losses from the drop in M N's long position.Inari Amertron vs. Sunway Construction Group | Inari Amertron vs. MI Technovation Bhd | Inari Amertron vs. CPE Technology Berhad | Inari Amertron vs. Systech Bhd |
M N vs. ES Ceramics Technology | M N vs. SSF Home Group | M N vs. Sapura Industrial Bhd | M N vs. Senheng New Retail |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
Bonds Directory Find actively traded corporate debentures issued by US companies | |
ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
Commodity Directory Find actively traded commodities issued by global exchanges | |
Share Portfolio Track or share privately all of your investments from the convenience of any device | |
Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |