Correlation Between Min Aik and FarGlory Hotel
Can any of the company-specific risk be diversified away by investing in both Min Aik and FarGlory Hotel 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 FarGlory Hotel 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 FarGlory Hotel Co, you can compare the effects of market volatilities on Min Aik and FarGlory Hotel 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 FarGlory Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Min Aik and FarGlory Hotel.
Diversification Opportunities for Min Aik and FarGlory Hotel
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Min and FarGlory is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Min Aik Technology and FarGlory Hotel Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FarGlory Hotel 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 FarGlory Hotel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FarGlory Hotel has no effect on the direction of Min Aik i.e., Min Aik and FarGlory Hotel go up and down completely randomly.
Pair Corralation between Min Aik and FarGlory Hotel
Assuming the 90 days trading horizon Min Aik Technology is expected to under-perform the FarGlory Hotel. In addition to that, Min Aik is 1.49 times more volatile than FarGlory Hotel Co. It trades about -0.3 of its total potential returns per unit of risk. FarGlory Hotel Co is currently generating about -0.11 per unit of volatility. If you would invest 2,575 in FarGlory Hotel Co on August 30, 2024 and sell it today you would lose (110.00) from holding FarGlory Hotel Co or give up 4.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Min Aik Technology vs. FarGlory Hotel Co
Performance |
| Timeline |
| Min Aik Technology |
| FarGlory Hotel |
Min Aik and FarGlory Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Min Aik and FarGlory Hotel
The main advantage of trading using opposite Min Aik and FarGlory Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Min Aik position performs unexpectedly, FarGlory Hotel 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 FarGlory Hotel will offset losses from the drop in FarGlory Hotel's long position.| Min Aik vs. Promise Technology | Min Aik vs. Spirox Corp | Min Aik vs. Zinwell | Min Aik vs. Gigastorage Corp |
| FarGlory Hotel vs. Ambassador Hotel | FarGlory Hotel vs. Lion Travel Service | FarGlory Hotel vs. First Hotel Co | FarGlory Hotel vs. FDC International Hotels |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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