Correlation Between ON24 and Mingteng International

Can any of the company-specific risk be diversified away by investing in both ON24 and Mingteng International 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 ON24 and Mingteng International into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between ON24 Inc and Mingteng International, you can compare the effects of market volatilities on ON24 and Mingteng International 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 ON24 with a short position of Mingteng International. Check out your portfolio center. Please also check ongoing floating volatility patterns of ON24 and Mingteng International.

Diversification Opportunities for ON24 and Mingteng International

0.16

Correlation Coefficient

ON24  Mingteng International

Average diversification

The 3 months correlation between ON24 and Mingteng is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding ON24 Inc and Mingteng International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mingteng International and ON24 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 ON24 Inc are associated (or correlated) with Mingteng International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mingteng International has no effect on the direction of ON24 i.e., ON24 and Mingteng International go up and down completely randomly.

Pair Corralation between ON24 and Mingteng International

Given the investment horizon of 90 days ON24 Inc is expected to under-perform the Mingteng International. But the stock apears to be less risky and, when comparing its historical volatility, ON24 Inc is 3.14 times less risky than Mingteng International. The stock trades about -0.18 of its potential returns per unit of risk. The Mingteng International is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  575.00  in Mingteng International on October 11, 2024 and sell it today you would lose (3.00) from holding Mingteng International or give up 0.52% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

ON24 Inc  vs.  Mingteng International

ON24 Inc

Risk-Adjusted Performance

4 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in ON24 Inc are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly unfluctuating basic indicators, ON24 may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Mingteng International

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Mingteng International are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of very weak technical and fundamental indicators, Mingteng International displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with ON24 and Mingteng International

The main advantage of trading using opposite ON24 and Mingteng International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ON24 position performs unexpectedly, Mingteng International 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 Mingteng International will offset losses from the drop in Mingteng International's long position.

The idea behind ON24 Inc and Mingteng International 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.

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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.