Correlation Between Inari Amertron and MI Technovation
Can any of the company-specific risk be diversified away by investing in both Inari Amertron and MI Technovation 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 Inari Amertron and MI Technovation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inari Amertron Bhd and MI Technovation Bhd, you can compare the effects of market volatilities on Inari Amertron and MI Technovation 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 Inari Amertron with a short position of MI Technovation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inari Amertron and MI Technovation.
Diversification Opportunities for Inari Amertron and MI Technovation
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Inari and 5286 is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Inari Amertron Bhd and MI Technovation Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MI Technovation Bhd and Inari Amertron 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 Inari Amertron Bhd are associated (or correlated) with MI Technovation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MI Technovation Bhd has no effect on the direction of Inari Amertron i.e., Inari Amertron and MI Technovation go up and down completely randomly.
Pair Corralation between Inari Amertron and MI Technovation
Assuming the 90 days trading horizon Inari Amertron is expected to generate 2.16 times less return on investment than MI Technovation. But when comparing it to its historical volatility, Inari Amertron Bhd is 1.24 times less risky than MI Technovation. It trades about 0.09 of its potential returns per unit of risk. MI Technovation Bhd is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 189.00 in MI Technovation Bhd on August 30, 2024 and sell it today you would earn a total of 20.00 from holding MI Technovation Bhd or generate 10.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inari Amertron Bhd vs. MI Technovation Bhd
Performance |
| Timeline |
| Inari Amertron Bhd |
| MI Technovation Bhd |
Inari Amertron and MI Technovation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inari Amertron and MI Technovation
The main advantage of trading using opposite Inari Amertron and MI Technovation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inari Amertron position performs unexpectedly, MI Technovation 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 MI Technovation will offset losses from the drop in MI Technovation's long position.| Inari Amertron vs. MI Technovation Bhd | Inari Amertron vs. Minetech Resources Bhd | Inari Amertron vs. Sunzen Biotech Bhd | Inari Amertron vs. Hengyuan Refining |
| MI Technovation vs. Minetech Resources Bhd | MI Technovation vs. Sunzen Biotech Bhd | MI Technovation vs. Hengyuan Refining | MI Technovation vs. Impiana Hotels Bhd |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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