Correlation Between Argosy Research and Microtips Technology

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Can any of the company-specific risk be diversified away by investing in both Argosy Research and Microtips Technology 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 Argosy Research and Microtips Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Argosy Research and Microtips Technology, you can compare the effects of market volatilities on Argosy Research and Microtips Technology 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 Argosy Research with a short position of Microtips Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Argosy Research and Microtips Technology.

Diversification Opportunities for Argosy Research and Microtips Technology

ArgosyMicrotipsDiversified AwayArgosyMicrotipsDiversified Away100%
0.08
  Correlation Coefficient

Significant diversification

The 3 months correlation between Argosy and Microtips is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Argosy Research and Microtips Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Microtips Technology and Argosy Research 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 Argosy Research are associated (or correlated) with Microtips Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Microtips Technology has no effect on the direction of Argosy Research i.e., Argosy Research and Microtips Technology go up and down completely randomly.

Pair Corralation between Argosy Research and Microtips Technology

Assuming the 90 days trading horizon Argosy Research is expected to generate 1.39 times more return on investment than Microtips Technology. However, Argosy Research is 1.39 times more volatile than Microtips Technology. It trades about -0.08 of its potential returns per unit of risk. Microtips Technology is currently generating about -0.11 per unit of risk. If you would invest  16,000  in Argosy Research on October 26, 2024 and sell it today you would lose (1,550) from holding Argosy Research or give up 9.69% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Argosy Research  vs.  Microtips Technology

 Performance 
JavaScript chart by amCharts 3.21.15NovDec2025 -10-505
JavaScript chart by amCharts 3.21.153217 3285
       Timeline  
Argosy Research 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Argosy Research has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest abnormal performance, the Stock's basic indicators remain stable and the latest fuss on Wall Street may also be a sign of long-term gains for the venture sophisticated investors.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan140145150155160165
Microtips Technology 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Microtips Technology has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest abnormal performance, the Stock's basic indicators remain stable and the latest fuss on Wall Street may also be a sign of long-term gains for the venture sophisticated investors.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan262728293031

Argosy Research and Microtips Technology Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-3.22-2.41-1.61-0.8-0.01320.761.552.343.133.92 0.050.100.150.20
JavaScript chart by amCharts 3.21.153217 3285
       Returns  

Pair Trading with Argosy Research and Microtips Technology

The main advantage of trading using opposite Argosy Research and Microtips Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Argosy Research position performs unexpectedly, Microtips Technology 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 Microtips Technology will offset losses from the drop in Microtips Technology's long position.
The idea behind Argosy Research and Microtips Technology 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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.

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