Correlation Between Micro Imaging and Premier Financial

Can any of the company-specific risk be diversified away by investing in both Micro Imaging and Premier Financial 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 Micro Imaging and Premier Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Micro Imaging Technology and Premier Financial Corp, you can compare the effects of market volatilities on Micro Imaging and Premier Financial 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 Micro Imaging with a short position of Premier Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Micro Imaging and Premier Financial.

Diversification Opportunities for Micro Imaging and Premier Financial

0.0

Correlation Coefficient

Micro Imaging  Premier Financial

Pay attention - limited upside

The 3 months correlation between Micro and Premier is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Micro Imaging Technology and Premier Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Premier Financial Corp and Micro Imaging 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 Micro Imaging Technology are associated (or correlated) with Premier Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Premier Financial Corp has no effect on the direction of Micro Imaging i.e., Micro Imaging and Premier Financial go up and down completely randomly.

Pair Corralation between Micro Imaging and Premier Financial

If you would invest  2,592  in Premier Financial Corp on December 20, 2024 and sell it today you would earn a total of  212.00  from holding Premier Financial Corp or generate 8.18% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	74.6%
Values	Daily Returns

Micro Imaging Technology  vs.  Premier Financial Corp

Micro Imaging Technology

Risk-Adjusted Performance

Very Weak

Over the last 90 days Micro Imaging Technology has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Micro Imaging is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

Premier Financial Corp

Risk-Adjusted Performance

OK

Over the last 90 days Premier Financial Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather fragile technical and fundamental indicators, Premier Financial may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Micro Imaging and Premier Financial

The main advantage of trading using opposite Micro Imaging and Premier Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Micro Imaging position performs unexpectedly, Premier Financial 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 Premier Financial will offset losses from the drop in Premier Financial's long position.

The idea behind Micro Imaging Technology and Premier Financial Corp 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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.