Correlation Between Airtac International and Makalot Industrial

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Airtac International and Makalot Industrial 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 Airtac International and Makalot Industrial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Airtac International Group and Makalot Industrial Co, you can compare the effects of market volatilities on Airtac International and Makalot Industrial 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 Airtac International with a short position of Makalot Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Airtac International and Makalot Industrial.

Diversification Opportunities for Airtac International and Makalot Industrial

0.69
  Correlation Coefficient

Poor diversification

The 3 months correlation between Airtac and Makalot is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Airtac International Group and Makalot Industrial Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Makalot Industrial and Airtac International 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 Airtac International Group are associated (or correlated) with Makalot Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Makalot Industrial has no effect on the direction of Airtac International i.e., Airtac International and Makalot Industrial go up and down completely randomly.

Pair Corralation between Airtac International and Makalot Industrial

Assuming the 90 days trading horizon Airtac International Group is expected to under-perform the Makalot Industrial. But the stock apears to be less risky and, when comparing its historical volatility, Airtac International Group is 1.12 times less risky than Makalot Industrial. The stock trades about -0.05 of its potential returns per unit of risk. The Makalot Industrial Co is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest  36,400  in Makalot Industrial Co on October 20, 2024 and sell it today you would lose (1,900) from holding Makalot Industrial Co or give up 5.22% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Airtac International Group  vs.  Makalot Industrial Co

 Performance 
       Timeline  
Airtac International 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Airtac International Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Airtac International is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.
Makalot Industrial 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Makalot Industrial Co has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Makalot Industrial is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Airtac International and Makalot Industrial Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Airtac International and Makalot Industrial

The main advantage of trading using opposite Airtac International and Makalot Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Airtac International position performs unexpectedly, Makalot Industrial 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 Makalot Industrial will offset losses from the drop in Makalot Industrial's long position.
The idea behind Airtac International Group and Makalot Industrial Co 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.
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.

Other Complementary Tools

Fundamentals Comparison
Compare fundamentals across multiple equities to find investing opportunities
Share Portfolio
Track or share privately all of your investments from the convenience of any device
Cryptocurrency Center
Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency
Performance Analysis
Check effects of mean-variance optimization against your current asset allocation
Stocks Directory
Find actively traded stocks across global markets