Correlation Between Mirle Automation and Sampo Corp
Can any of the company-specific risk be diversified away by investing in both Mirle Automation and Sampo Corp 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 Mirle Automation and Sampo Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mirle Automation Corp and Sampo Corp, you can compare the effects of market volatilities on Mirle Automation and Sampo Corp 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 Mirle Automation with a short position of Sampo Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mirle Automation and Sampo Corp.
Diversification Opportunities for Mirle Automation and Sampo Corp
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Mirle and Sampo is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Mirle Automation Corp and Sampo Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sampo Corp and Mirle Automation 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 Mirle Automation Corp are associated (or correlated) with Sampo Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sampo Corp has no effect on the direction of Mirle Automation i.e., Mirle Automation and Sampo Corp go up and down completely randomly.
Pair Corralation between Mirle Automation and Sampo Corp
Assuming the 90 days trading horizon Mirle Automation Corp is expected to under-perform the Sampo Corp. In addition to that, Mirle Automation is 4.99 times more volatile than Sampo Corp. It trades about 0.0 of its total potential returns per unit of risk. Sampo Corp is currently generating about -0.01 per unit of volatility. 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 |
Mirle Automation Corp vs. Sampo Corp
Performance |
| Timeline |
| Mirle Automation Corp |
| Sampo Corp |
Mirle Automation and Sampo Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mirle Automation and Sampo Corp
The main advantage of trading using opposite Mirle Automation and Sampo Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mirle Automation position performs unexpectedly, Sampo Corp 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 Sampo Corp will offset losses from the drop in Sampo Corp's long position.| Mirle Automation vs. United Integrated Services | Mirle Automation vs. Greatek Electronics | Mirle Automation vs. Merry Electronics Co | Mirle Automation vs. Transcend Information |
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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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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