Correlation Between Min Aik and FIT Holding
Can any of the company-specific risk be diversified away by investing in both Min Aik and FIT Holding 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 FIT Holding 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 FIT Holding Co, you can compare the effects of market volatilities on Min Aik and FIT Holding 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 FIT Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Min Aik and FIT Holding.
Diversification Opportunities for Min Aik and FIT Holding
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Min and FIT is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Min Aik Technology and FIT Holding Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FIT Holding 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 FIT Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FIT Holding has no effect on the direction of Min Aik i.e., Min Aik and FIT Holding go up and down completely randomly.
Pair Corralation between Min Aik and FIT Holding
Assuming the 90 days trading horizon Min Aik is expected to generate 1.87 times less return on investment than FIT Holding. But when comparing it to its historical volatility, Min Aik Technology is 1.02 times less risky than FIT Holding. It trades about 0.04 of its potential returns per unit of risk. FIT Holding Co is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 2,617 in FIT Holding Co on October 13, 2024 and sell it today you would earn a total of 3,203 from holding FIT Holding Co or generate 122.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Min Aik Technology vs. FIT Holding Co
Performance |
| Timeline |
| Min Aik Technology |
| FIT Holding |
Min Aik and FIT Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Min Aik and FIT Holding
The main advantage of trading using opposite Min Aik and FIT Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Min Aik position performs unexpectedly, FIT Holding 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 FIT Holding will offset losses from the drop in FIT Holding's long position.| Min Aik vs. Promise Technology | Min Aik vs. Spirox Corp | Min Aik vs. Zinwell | Min Aik vs. Gigastorage Corp |
| FIT Holding vs. Gigastorage Corp | FIT Holding vs. Shuttle | FIT Holding vs. Yem Chio Co | FIT Holding vs. Walton Advanced Engineering |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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