Correlation Between Mirle Automation and E Lead
Can any of the company-specific risk be diversified away by investing in both Mirle Automation and E Lead 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 E Lead 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 E Lead Electronic Co, you can compare the effects of market volatilities on Mirle Automation and E Lead 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 E Lead. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mirle Automation and E Lead.
Diversification Opportunities for Mirle Automation and E Lead
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Mirle and 2497 is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Mirle Automation Corp and E Lead Electronic Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on E Lead Electronic 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 E Lead. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of E Lead Electronic has no effect on the direction of Mirle Automation i.e., Mirle Automation and E Lead go up and down completely randomly.
Pair Corralation between Mirle Automation and E Lead
Assuming the 90 days trading horizon Mirle Automation Corp is expected to generate 1.22 times more return on investment than E Lead. However, Mirle Automation is 1.22 times more volatile than E Lead Electronic Co. It trades about 0.07 of its potential returns per unit of risk. E Lead Electronic Co is currently generating about -0.01 per unit of risk. If you would invest 3,815 in Mirle Automation Corp on August 26, 2024 and sell it today you would earn a total of 3,685 from holding Mirle Automation Corp or generate 96.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mirle Automation Corp vs. E Lead Electronic Co
Performance |
| Timeline |
| Mirle Automation Corp |
| E Lead Electronic |
Mirle Automation and E Lead Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mirle Automation and E Lead
The main advantage of trading using opposite Mirle Automation and E Lead positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mirle Automation position performs unexpectedly, E Lead 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 E Lead will offset losses from the drop in E Lead's long position.| Mirle Automation vs. Sunny Friend Environmental | Mirle Automation vs. TTET Union Corp | Mirle Automation vs. ECOVE Environment Corp | Mirle Automation vs. Yulon Finance Corp |
| E Lead vs. Weltrend Semiconductor | E Lead vs. Catcher Technology Co | E Lead vs. Cub Elecparts | E Lead vs. Elan Microelectronics 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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