Correlation Between MITECH CoLtd and V One
Can any of the company-specific risk be diversified away by investing in both MITECH CoLtd and V One 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 V One into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MITECH CoLtd and V One Tech Co, you can compare the effects of market volatilities on MITECH CoLtd and V One 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 V One. Check out your portfolio center. Please also check ongoing floating volatility patterns of MITECH CoLtd and V One.
Diversification Opportunities for MITECH CoLtd and V One
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between MITECH and 251630 is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding MITECH CoLtd and V One Tech Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on V One Tech 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 V One. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of V One Tech has no effect on the direction of MITECH CoLtd i.e., MITECH CoLtd and V One go up and down completely randomly.
Pair Corralation between MITECH CoLtd and V One
Assuming the 90 days trading horizon MITECH CoLtd is expected to under-perform the V One. But the stock apears to be less risky and, when comparing its historical volatility, MITECH CoLtd is 2.19 times less risky than V One. The stock trades about -0.17 of its potential returns per unit of risk. The V One Tech Co is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 396,000 in V One Tech Co on October 29, 2024 and sell it today you would earn a total of 77,000 from holding V One Tech Co or generate 19.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MITECH CoLtd vs. V One Tech Co
Performance |
| Timeline |
| MITECH CoLtd |
| V One Tech |
MITECH CoLtd and V One Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MITECH CoLtd and V One
The main advantage of trading using opposite MITECH CoLtd and V One positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MITECH CoLtd position performs unexpectedly, V One 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 V One will offset losses from the drop in V One's long position.| MITECH CoLtd vs. V One Tech Co | MITECH CoLtd vs. SEOWONINTECHCoLtd | MITECH CoLtd vs. SS TECH | MITECH CoLtd vs. Woori Technology Investment |
| V One vs. Samyoung Electronics Co | V One vs. Vissem Electronics Co | V One vs. Seoul Food Industrial | V One vs. Hanwha Life Insurance |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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