Correlation Between Min Aik and Shieh Yih
Can any of the company-specific risk be diversified away by investing in both Min Aik and Shieh Yih 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 Min Aik and Shieh Yih into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Min Aik Technology and Shieh Yih Machinery, you can compare the effects of market volatilities on Min Aik and Shieh Yih 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 Min Aik with a short position of Shieh Yih. Check out your portfolio center. Please also check ongoing floating volatility patterns of Min Aik and Shieh Yih.
Diversification Opportunities for Min Aik and Shieh Yih
Very poor diversification
The 3 months correlation between Min and Shieh is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Min Aik Technology and Shieh Yih Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shieh Yih Machinery and Min Aik 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 Min Aik Technology are associated (or correlated) with Shieh Yih. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shieh Yih Machinery has no effect on the direction of Min Aik i.e., Min Aik and Shieh Yih go up and down completely randomly.
Pair Corralation between Min Aik and Shieh Yih
Assuming the 90 days trading horizon Min Aik Technology is expected to under-perform the Shieh Yih. But the stock apears to be less risky and, when comparing its historical volatility, Min Aik Technology is 1.24 times less risky than Shieh Yih. The stock trades about 0.0 of its potential returns per unit of risk. The Shieh Yih Machinery is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 3,815 in Shieh Yih Machinery on September 24, 2024 and sell it today you would earn a total of 85.00 from holding Shieh Yih Machinery or generate 2.23% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Min Aik Technology vs. Shieh Yih Machinery
Performance |
Timeline |
Min Aik Technology |
Shieh Yih Machinery |
Min Aik and Shieh Yih Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Min Aik and Shieh Yih
The main advantage of trading using opposite Min Aik and Shieh Yih positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Min Aik position performs unexpectedly, Shieh Yih 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 Shieh Yih will offset losses from the drop in Shieh Yih's long position.Min Aik vs. Promise Technology | Min Aik vs. Spirox Corp | Min Aik vs. Zinwell | Min Aik vs. Gigastorage Corp |
Shieh Yih vs. Min Aik Technology | Shieh Yih vs. V Tac Technology Co | Shieh Yih vs. Wei Chuan Foods | Shieh Yih vs. Sun Max Tech |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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