Correlation Between Sampo Corp and Mirle Automation
Can any of the company-specific risk be diversified away by investing in both Sampo Corp and Mirle Automation 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 Sampo Corp and Mirle Automation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sampo Corp and Mirle Automation Corp, you can compare the effects of market volatilities on Sampo Corp and Mirle Automation 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 Sampo Corp with a short position of Mirle Automation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sampo Corp and Mirle Automation.
Diversification Opportunities for Sampo Corp and Mirle Automation
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sampo and Mirle is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Sampo Corp and Mirle Automation Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mirle Automation Corp and Sampo Corp 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 Sampo Corp are associated (or correlated) with Mirle Automation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mirle Automation Corp has no effect on the direction of Sampo Corp i.e., Sampo Corp and Mirle Automation go up and down completely randomly.
Pair Corralation between Sampo Corp and Mirle Automation
Assuming the 90 days trading horizon Sampo Corp is expected to generate 0.2 times more return on investment than Mirle Automation. However, Sampo Corp is 4.99 times less risky than Mirle Automation. It trades about -0.01 of its potential returns per unit of risk. Mirle Automation Corp is currently generating about 0.0 per unit of risk. If you would invest 2,825 in Sampo Corp on October 25, 2024 and sell it today you would lose (20.00) from holding Sampo Corp or give up 0.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Sampo Corp vs. Mirle Automation Corp
Performance |
| Timeline |
| Sampo Corp |
| Mirle Automation Corp |
Sampo Corp and Mirle Automation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sampo Corp and Mirle Automation
The main advantage of trading using opposite Sampo Corp and Mirle Automation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sampo Corp position performs unexpectedly, Mirle Automation 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 Mirle Automation will offset losses from the drop in Mirle Automation's long position.| Sampo Corp vs. TECO Electric Machinery | Sampo Corp vs. Walsin Lihwa Corp | Sampo Corp vs. Asia Cement Corp | Sampo Corp vs. Far Eastern New |
| Mirle Automation vs. United Integrated Services | Mirle Automation vs. Greatek Electronics | Mirle Automation vs. Merry Electronics Co | Mirle Automation vs. Transcend Information |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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