Correlation Between Mirle Automation and United Integrated
Can any of the company-specific risk be diversified away by investing in both Mirle Automation and United Integrated 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 United Integrated 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 United Integrated Services, you can compare the effects of market volatilities on Mirle Automation and United Integrated 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 United Integrated. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mirle Automation and United Integrated.
Diversification Opportunities for Mirle Automation and United Integrated
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Mirle and United is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Mirle Automation Corp and United Integrated Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United Integrated 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 United Integrated. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United Integrated has no effect on the direction of Mirle Automation i.e., Mirle Automation and United Integrated go up and down completely randomly.
Pair Corralation between Mirle Automation and United Integrated
Assuming the 90 days trading horizon Mirle Automation Corp is expected to under-perform the United Integrated. In addition to that, Mirle Automation is 1.05 times more volatile than United Integrated Services. It trades about -0.08 of its total potential returns per unit of risk. United Integrated Services is currently generating about 0.3 per unit of volatility. If you would invest 31,900 in United Integrated Services on August 30, 2024 and sell it today you would earn a total of 9,100 from holding United Integrated Services or generate 28.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mirle Automation Corp vs. United Integrated Services
Performance |
| Timeline |
| Mirle Automation Corp |
| United Integrated |
Mirle Automation and United Integrated Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mirle Automation and United Integrated
The main advantage of trading using opposite Mirle Automation and United Integrated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mirle Automation position performs unexpectedly, United Integrated 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 United Integrated will offset losses from the drop in United Integrated'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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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