Correlation Between Chroma ATE and Makalot Industrial
Can any of the company-specific risk be diversified away by investing in both Chroma ATE and Makalot Industrial 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 Chroma ATE and Makalot Industrial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chroma ATE and Makalot Industrial Co, you can compare the effects of market volatilities on Chroma ATE and Makalot Industrial 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 Chroma ATE with a short position of Makalot Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chroma ATE and Makalot Industrial.
Diversification Opportunities for Chroma ATE and Makalot Industrial
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Chroma and Makalot is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Chroma ATE and Makalot Industrial Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Makalot Industrial and Chroma ATE 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 Chroma ATE are associated (or correlated) with Makalot Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Makalot Industrial has no effect on the direction of Chroma ATE i.e., Chroma ATE and Makalot Industrial go up and down completely randomly.
Pair Corralation between Chroma ATE and Makalot Industrial
Assuming the 90 days trading horizon Chroma ATE is expected to under-perform the Makalot Industrial. In addition to that, Chroma ATE is 2.1 times more volatile than Makalot Industrial Co. It trades about -0.08 of its total potential returns per unit of risk. Makalot Industrial Co is currently generating about 0.09 per unit of volatility. If you would invest 32,900 in Makalot Industrial Co on October 25, 2024 and sell it today you would earn a total of 1,800 from holding Makalot Industrial Co or generate 5.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chroma ATE vs. Makalot Industrial Co
Performance |
| Timeline |
| Chroma ATE |
| Makalot Industrial |
Chroma ATE and Makalot Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chroma ATE and Makalot Industrial
The main advantage of trading using opposite Chroma ATE and Makalot Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chroma ATE position performs unexpectedly, Makalot Industrial 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 Makalot Industrial will offset losses from the drop in Makalot Industrial's long position.| Chroma ATE vs. Accton Technology Corp | Chroma ATE vs. Delta Electronics | Chroma ATE vs. Chicony Electronics Co | Chroma ATE vs. Advantech Co |
| Makalot Industrial vs. Eclat Textile Co | Makalot Industrial vs. Feng Tay Enterprises | Makalot Industrial vs. President Chain Store | Makalot Industrial vs. Uni President Enterprises Corp |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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