Correlation Between MITECH CoLtd and Amogreentech
Can any of the company-specific risk be diversified away by investing in both MITECH CoLtd and Amogreentech 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 MITECH CoLtd and Amogreentech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MITECH CoLtd and Amogreentech Co, you can compare the effects of market volatilities on MITECH CoLtd and Amogreentech 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 MITECH CoLtd with a short position of Amogreentech. Check out your portfolio center. Please also check ongoing floating volatility patterns of MITECH CoLtd and Amogreentech.
Diversification Opportunities for MITECH CoLtd and Amogreentech
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between MITECH and Amogreentech is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding MITECH CoLtd and Amogreentech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amogreentech and MITECH CoLtd 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 MITECH CoLtd are associated (or correlated) with Amogreentech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amogreentech has no effect on the direction of MITECH CoLtd i.e., MITECH CoLtd and Amogreentech go up and down completely randomly.
Pair Corralation between MITECH CoLtd and Amogreentech
Assuming the 90 days trading horizon MITECH CoLtd is expected to generate 0.88 times more return on investment than Amogreentech. However, MITECH CoLtd is 1.14 times less risky than Amogreentech. It trades about 0.0 of its potential returns per unit of risk. Amogreentech Co is currently generating about -0.03 per unit of risk. If you would invest 1,075,563 in MITECH CoLtd on October 11, 2024 and sell it today you would lose (239,563) from holding MITECH CoLtd or give up 22.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MITECH CoLtd vs. Amogreentech Co
Performance |
| Timeline |
| MITECH CoLtd |
| Amogreentech |
MITECH CoLtd and Amogreentech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MITECH CoLtd and Amogreentech
The main advantage of trading using opposite MITECH CoLtd and Amogreentech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MITECH CoLtd position performs unexpectedly, Amogreentech 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 Amogreentech will offset losses from the drop in Amogreentech's long position.| MITECH CoLtd vs. Pureun Mutual Savings | MITECH CoLtd vs. DB Financial Investment | MITECH CoLtd vs. Daishin Information Communications | MITECH CoLtd vs. Ssangyong Information Communication |
| Amogreentech vs. TOPMATERIAL LTD | Amogreentech vs. PI Advanced Materials | Amogreentech vs. Ssangyong Materials Corp | Amogreentech vs. Kolon Plastics |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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