Correlation Between MITECH CoLtd and Amogreentech

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

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

Diversification Opportunities for MITECH CoLtd and Amogreentech

0.41

Correlation Coefficient

MITECH CoLtd  Amogreentech

Very weak diversification

The 3 months correlation between MITECH and Amogreentech is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding MITECH CoLtd and Amogreentech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amogreentech and MITECH CoLtd 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 MITECH CoLtd are associated (or correlated) with Amogreentech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amogreentech has no effect on the direction of MITECH CoLtd i.e., MITECH CoLtd and Amogreentech go up and down completely randomly.

Pair Corralation between MITECH CoLtd and Amogreentech

Assuming the 90 days trading horizon MITECH CoLtd is expected to under-perform the Amogreentech. But the stock apears to be less risky and, when comparing its historical volatility, MITECH CoLtd is 1.34 times less risky than Amogreentech. The stock trades about -0.05 of its potential returns per unit of risk. The Amogreentech Co is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  595,000  in Amogreentech Co on October 25, 2024 and sell it today you would earn a total of  15,000  from holding Amogreentech Co or generate 2.52% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	95.0%
Values	Daily Returns

MITECH CoLtd  vs.  Amogreentech Co

MITECH CoLtd

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days MITECH CoLtd has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, MITECH CoLtd is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Amogreentech

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Amogreentech Co has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with MITECH CoLtd and Amogreentech

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

The idea behind MITECH CoLtd and Amogreentech 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.

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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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.