Correlation Between LARGAN Precision and MacroWell OMG
Can any of the company-specific risk be diversified away by investing in both LARGAN Precision and MacroWell OMG 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 LARGAN Precision and MacroWell OMG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LARGAN Precision Co and MacroWell OMG Digital, you can compare the effects of market volatilities on LARGAN Precision and MacroWell OMG 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 LARGAN Precision with a short position of MacroWell OMG. Check out your portfolio center. Please also check ongoing floating volatility patterns of LARGAN Precision and MacroWell OMG.
Diversification Opportunities for LARGAN Precision and MacroWell OMG
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between LARGAN and MacroWell is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding LARGAN Precision Co and MacroWell OMG Digital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MacroWell OMG Digital and LARGAN Precision 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 LARGAN Precision Co are associated (or correlated) with MacroWell OMG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MacroWell OMG Digital has no effect on the direction of LARGAN Precision i.e., LARGAN Precision and MacroWell OMG go up and down completely randomly.
Pair Corralation between LARGAN Precision and MacroWell OMG
Assuming the 90 days trading horizon LARGAN Precision is expected to generate 1.23 times less return on investment than MacroWell OMG. But when comparing it to its historical volatility, LARGAN Precision Co is 1.31 times less risky than MacroWell OMG. It trades about 0.03 of its potential returns per unit of risk. MacroWell OMG Digital is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 8,640 in MacroWell OMG Digital on August 31, 2024 and sell it today you would earn a total of 940.00 from holding MacroWell OMG Digital or generate 10.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.73% |
| Values | Daily Returns |
LARGAN Precision Co vs. MacroWell OMG Digital
Performance |
| Timeline |
| LARGAN Precision |
| MacroWell OMG Digital |
LARGAN Precision and MacroWell OMG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LARGAN Precision and MacroWell OMG
The main advantage of trading using opposite LARGAN Precision and MacroWell OMG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LARGAN Precision position performs unexpectedly, MacroWell OMG 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 MacroWell OMG will offset losses from the drop in MacroWell OMG's long position.| LARGAN Precision vs. MediaTek | LARGAN Precision vs. Hon Hai Precision | LARGAN Precision vs. Delta Electronics | LARGAN Precision vs. Catcher Technology Co |
| MacroWell OMG vs. Gamania Digital Entertainment | MacroWell OMG vs. Soft World International | MacroWell OMG vs. Softstar Entertainment | MacroWell OMG vs. X Legend Entertainment Co |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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