Correlation Between Min Aik and Softstar Entertainment
Can any of the company-specific risk be diversified away by investing in both Min Aik and Softstar Entertainment 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 Softstar Entertainment 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 Softstar Entertainment, you can compare the effects of market volatilities on Min Aik and Softstar Entertainment 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 Softstar Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Min Aik and Softstar Entertainment.
Diversification Opportunities for Min Aik and Softstar Entertainment
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Min and Softstar is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Min Aik Technology and Softstar Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Softstar Entertainment 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 Softstar Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Softstar Entertainment has no effect on the direction of Min Aik i.e., Min Aik and Softstar Entertainment go up and down completely randomly.
Pair Corralation between Min Aik and Softstar Entertainment
Assuming the 90 days trading horizon Min Aik Technology is expected to generate 0.85 times more return on investment than Softstar Entertainment. However, Min Aik Technology is 1.18 times less risky than Softstar Entertainment. It trades about 0.16 of its potential returns per unit of risk. Softstar Entertainment is currently generating about -0.02 per unit of risk. If you would invest 2,420 in Min Aik Technology on December 30, 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 |
Min Aik Technology vs. Softstar Entertainment
Performance |
Timeline |
Min Aik Technology |
Softstar Entertainment |
Min Aik and Softstar Entertainment Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Min Aik and Softstar Entertainment
The main advantage of trading using opposite Min Aik and Softstar Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Min Aik position performs unexpectedly, Softstar Entertainment 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 Softstar Entertainment will offset losses from the drop in Softstar Entertainment's long position.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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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