Correlation Between Min Aik and Ichia Technologies
Can any of the company-specific risk be diversified away by investing in both Min Aik and Ichia Technologies 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 Ichia Technologies 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 Ichia Technologies, you can compare the effects of market volatilities on Min Aik and Ichia Technologies 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 Ichia Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Min Aik and Ichia Technologies.
Diversification Opportunities for Min Aik and Ichia Technologies
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Min and Ichia is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Min Aik Technology and Ichia Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ichia Technologies 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 Ichia Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ichia Technologies has no effect on the direction of Min Aik i.e., Min Aik and Ichia Technologies go up and down completely randomly.
Pair Corralation between Min Aik and Ichia Technologies
Assuming the 90 days trading horizon Min Aik Technology is expected to under-perform the Ichia Technologies. In addition to that, Min Aik is 1.49 times more volatile than Ichia Technologies. It trades about -0.16 of its total potential returns per unit of risk. Ichia Technologies is currently generating about -0.14 per unit of volatility. If you would invest 4,255 in Ichia Technologies on October 24, 2024 and sell it today you would lose (580.00) from holding Ichia Technologies or give up 13.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Min Aik Technology vs. Ichia Technologies
Performance |
| Timeline |
| Min Aik Technology |
| Ichia Technologies |
Min Aik and Ichia Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Min Aik and Ichia Technologies
The main advantage of trading using opposite Min Aik and Ichia Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Min Aik position performs unexpectedly, Ichia Technologies 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 Ichia Technologies will offset losses from the drop in Ichia Technologies' long position.| Min Aik vs. Promise Technology | Min Aik vs. Spirox Corp | Min Aik vs. Zinwell | Min Aik vs. Gigastorage Corp |
| Ichia Technologies vs. Cheng Uei Precision | Ichia Technologies vs. Sunplus Technology Co | Ichia Technologies vs. Merry Electronics Co | Ichia Technologies vs. D Link 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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