Correlation Between Mirle Automation and Chicony Power
Can any of the company-specific risk be diversified away by investing in both Mirle Automation and Chicony Power 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 Chicony Power 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 Chicony Power Technology, you can compare the effects of market volatilities on Mirle Automation and Chicony Power 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 Chicony Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mirle Automation and Chicony Power.
Diversification Opportunities for Mirle Automation and Chicony Power
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Mirle and Chicony is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Mirle Automation Corp and Chicony Power Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chicony Power Technology 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 Chicony Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chicony Power Technology has no effect on the direction of Mirle Automation i.e., Mirle Automation and Chicony Power go up and down completely randomly.
Pair Corralation between Mirle Automation and Chicony Power
Assuming the 90 days trading horizon Mirle Automation Corp is expected to generate 1.54 times more return on investment than Chicony Power. However, Mirle Automation is 1.54 times more volatile than Chicony Power Technology. It trades about 0.0 of its potential returns per unit of risk. Chicony Power Technology is currently generating about -0.01 per unit of risk. If you would invest 7,800 in Mirle Automation Corp on October 25, 2024 and sell it today you would lose (530.00) from holding Mirle Automation Corp or give up 6.79% 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. Chicony Power Technology
Performance |
| Timeline |
| Mirle Automation Corp |
| Chicony Power Technology |
Mirle Automation and Chicony Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mirle Automation and Chicony Power
The main advantage of trading using opposite Mirle Automation and Chicony Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mirle Automation position performs unexpectedly, Chicony Power 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 Chicony Power will offset losses from the drop in Chicony Power'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 |
| Chicony Power vs. Li Kang Biomedical | Chicony Power vs. Air Asia Co | Chicony Power vs. MediaTek | Chicony Power vs. International CSRC Investment |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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