Correlation Between Chenming Mold and Min Aik
Can any of the company-specific risk be diversified away by investing in both Chenming Mold and Min Aik 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 Chenming Mold and Min Aik into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chenming Mold Industrial and Min Aik Technology, you can compare the effects of market volatilities on Chenming Mold and Min Aik 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 Chenming Mold with a short position of Min Aik. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chenming Mold and Min Aik.
Diversification Opportunities for Chenming Mold and Min Aik
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Chenming and Min is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Chenming Mold Industrial and Min Aik Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Min Aik Technology and Chenming Mold 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 Chenming Mold Industrial are associated (or correlated) with Min Aik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Min Aik Technology has no effect on the direction of Chenming Mold i.e., Chenming Mold and Min Aik go up and down completely randomly.
Pair Corralation between Chenming Mold and Min Aik
Assuming the 90 days trading horizon Chenming Mold Industrial is expected to under-perform the Min Aik. In addition to that, Chenming Mold is 1.57 times more volatile than Min Aik Technology. It trades about -0.08 of its total potential returns per unit of risk. Min Aik Technology is currently generating about 0.16 per unit of volatility. If you would invest 2,420 in Min Aik Technology on December 29, 2024 and sell it today you would earn a total of 450.00 from holding Min Aik Technology or generate 18.6% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Chenming Mold Industrial vs. Min Aik Technology
Performance |
Timeline |
Chenming Mold Industrial |
Min Aik Technology |
Chenming Mold and Min Aik Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Chenming Mold and Min Aik
The main advantage of trading using opposite Chenming Mold and Min Aik positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chenming Mold position performs unexpectedly, Min Aik 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 Min Aik will offset losses from the drop in Min Aik's long position.Chenming Mold vs. Clevo Co | Chenming Mold vs. Zinwell | Chenming Mold vs. Min Aik Technology | Chenming Mold vs. Promise Technology |
Min Aik vs. Promise Technology | Min Aik vs. Spirox Corp | Min Aik vs. Zinwell | Min Aik vs. Gigastorage Corp |
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.
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