Correlation Between Macronix International and Kaimei Electronic
Can any of the company-specific risk be diversified away by investing in both Macronix International and Kaimei Electronic 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 Macronix International and Kaimei Electronic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Macronix International Co and Kaimei Electronic Corp, you can compare the effects of market volatilities on Macronix International and Kaimei Electronic 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 Macronix International with a short position of Kaimei Electronic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Macronix International and Kaimei Electronic.
Diversification Opportunities for Macronix International and Kaimei Electronic
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Macronix and Kaimei is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Macronix International Co and Kaimei Electronic Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kaimei Electronic Corp and Macronix International 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 Macronix International Co are associated (or correlated) with Kaimei Electronic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kaimei Electronic Corp has no effect on the direction of Macronix International i.e., Macronix International and Kaimei Electronic go up and down completely randomly.
Pair Corralation between Macronix International and Kaimei Electronic
Assuming the 90 days trading horizon Macronix International Co is expected to generate 1.28 times more return on investment than Kaimei Electronic. However, Macronix International is 1.28 times more volatile than Kaimei Electronic Corp. It trades about 0.39 of its potential returns per unit of risk. Kaimei Electronic Corp is currently generating about 0.11 per unit of risk. If you would invest 1,880 in Macronix International Co on November 28, 2024 and sell it today you would earn a total of 340.00 from holding Macronix International Co or generate 18.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Macronix International Co vs. Kaimei Electronic Corp
Performance |
| Timeline |
| Macronix International |
| Kaimei Electronic Corp |
Macronix International and Kaimei Electronic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Macronix International and Kaimei Electronic
The main advantage of trading using opposite Macronix International and Kaimei Electronic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Macronix International position performs unexpectedly, Kaimei Electronic 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 Kaimei Electronic will offset losses from the drop in Kaimei Electronic's long position.| Macronix International vs. Winbond Electronics Corp | Macronix International vs. United Microelectronics | Macronix International vs. Mosel Vitelic | Macronix International vs. VIA Technologies |
| Kaimei Electronic vs. Yageo Corp | Kaimei Electronic vs. Taiwan Mask Corp | Kaimei Electronic vs. Macronix International Co | Kaimei Electronic vs. Gold Circuit Electronics |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |