Correlation Between Universal Vision and Min Aik
Can any of the company-specific risk be diversified away by investing in both Universal Vision 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 Universal Vision and Min Aik into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Universal Vision Biotechnology and Min Aik Technology, you can compare the effects of market volatilities on Universal Vision 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 Universal Vision with a short position of Min Aik. Check out your portfolio center. Please also check ongoing floating volatility patterns of Universal Vision and Min Aik.
Diversification Opportunities for Universal Vision and Min Aik
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Universal and Min is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Universal Vision Biotechnology 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 Universal Vision 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 Universal Vision Biotechnology 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 Universal Vision i.e., Universal Vision and Min Aik go up and down completely randomly.
Pair Corralation between Universal Vision and Min Aik
Assuming the 90 days trading horizon Universal Vision is expected to generate 2.68 times less return on investment than Min Aik. In addition to that, Universal Vision is 1.93 times more volatile than Min Aik Technology. It trades about 0.01 of its total potential returns per unit of risk. Min Aik Technology is currently generating about 0.05 per unit of volatility. If you would invest 1,592 in Min Aik Technology on September 23, 2024 and sell it today you would earn a total of 798.00 from holding Min Aik Technology or generate 50.13% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 99.79% |
Values | Daily Returns |
Universal Vision Biotechnology vs. Min Aik Technology
Performance |
Timeline |
Universal Vision Bio |
Min Aik Technology |
Universal Vision and Min Aik Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Universal Vision and Min Aik
The main advantage of trading using opposite Universal Vision and Min Aik positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Universal Vision 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.Universal Vision vs. Ichia Technologies | Universal Vision vs. Min Aik Technology | Universal Vision vs. Asmedia Technology | Universal Vision vs. Space Shuttle Hi Tech |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
Share Portfolio Track or share privately all of your investments from the convenience of any device | |
Technical Analysis Check basic technical indicators and analysis based on most latest market data |