Correlation Between Min Aik and SYN Tech
Can any of the company-specific risk be diversified away by investing in both Min Aik and SYN Tech 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 Min Aik and SYN Tech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Min Aik Technology and SYN Tech Chem Pharm, you can compare the effects of market volatilities on Min Aik and SYN Tech 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 Min Aik with a short position of SYN Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Min Aik and SYN Tech.
Diversification Opportunities for Min Aik and SYN Tech
Good diversification
The 3 months correlation between Min and SYN is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Min Aik Technology and SYN Tech Chem Pharm in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SYN Tech Chem and Min Aik 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 Min Aik Technology are associated (or correlated) with SYN Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SYN Tech Chem has no effect on the direction of Min Aik i.e., Min Aik and SYN Tech go up and down completely randomly.
Pair Corralation between Min Aik and SYN Tech
Assuming the 90 days trading horizon Min Aik Technology is expected to generate 2.25 times more return on investment than SYN Tech. However, Min Aik is 2.25 times more volatile than SYN Tech Chem Pharm. It trades about 0.04 of its potential returns per unit of risk. SYN Tech Chem Pharm is currently generating about 0.04 per unit of risk. If you would invest 1,641 in Min Aik Technology on October 13, 2024 and sell it today you would earn a total of 694.00 from holding Min Aik Technology or generate 42.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Min Aik Technology vs. SYN Tech Chem Pharm
Performance |
| Timeline |
| Min Aik Technology |
| SYN Tech Chem |
Min Aik and SYN Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Min Aik and SYN Tech
The main advantage of trading using opposite Min Aik and SYN Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Min Aik position performs unexpectedly, SYN Tech 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 SYN Tech will offset losses from the drop in SYN Tech's long position.| Min Aik vs. Promise Technology | Min Aik vs. Spirox Corp | Min Aik vs. Zinwell | Min Aik vs. Gigastorage Corp |
| SYN Tech vs. EirGenix | SYN Tech vs. Medigen Vaccine Biologics | SYN Tech vs. OBI Pharma | SYN Tech vs. TaiMed Biologics |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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