Correlation Between Ares Management and MIE HOLDINGS
Can any of the company-specific risk be diversified away by investing in both Ares Management and MIE HOLDINGS 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 Ares Management and MIE HOLDINGS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ares Management Corp and MIE HOLDINGS, you can compare the effects of market volatilities on Ares Management and MIE HOLDINGS 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 Ares Management with a short position of MIE HOLDINGS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ares Management and MIE HOLDINGS.
Diversification Opportunities for Ares Management and MIE HOLDINGS
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ares and MIE is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Ares Management Corp and MIE HOLDINGS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MIE HOLDINGS and Ares Management 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 Ares Management Corp are associated (or correlated) with MIE HOLDINGS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MIE HOLDINGS has no effect on the direction of Ares Management i.e., Ares Management and MIE HOLDINGS go up and down completely randomly.
Pair Corralation between Ares Management and MIE HOLDINGS
If you would invest 16,008 in Ares Management Corp on September 14, 2024 and sell it today you would earn a total of 1,490 from holding Ares Management Corp or generate 9.31% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Ares Management Corp vs. MIE HOLDINGS
Performance |
Timeline |
Ares Management Corp |
MIE HOLDINGS |
Ares Management and MIE HOLDINGS Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ares Management and MIE HOLDINGS
The main advantage of trading using opposite Ares Management and MIE HOLDINGS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ares Management position performs unexpectedly, MIE HOLDINGS 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 MIE HOLDINGS will offset losses from the drop in MIE HOLDINGS's long position.Ares Management vs. Ameriprise Financial | Ares Management vs. Superior Plus Corp | Ares Management vs. SIVERS SEMICONDUCTORS AB | Ares Management vs. CHINA HUARONG ENERHD 50 |
MIE HOLDINGS vs. MAVEN WIRELESS SWEDEN | MIE HOLDINGS vs. AOYAMA TRADING | MIE HOLDINGS vs. 24SEVENOFFICE GROUP AB | MIE HOLDINGS vs. New Residential 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |