Correlation Between Min Aik and Jinli Group
Can any of the company-specific risk be diversified away by investing in both Min Aik and Jinli Group 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 Jinli Group 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 Jinli Group Holdings, you can compare the effects of market volatilities on Min Aik and Jinli Group 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 Jinli Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Min Aik and Jinli Group.
Diversification Opportunities for Min Aik and Jinli Group
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Min and Jinli is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Min Aik Technology and Jinli Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinli Group Holdings 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 Jinli Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinli Group Holdings has no effect on the direction of Min Aik i.e., Min Aik and Jinli Group go up and down completely randomly.
Pair Corralation between Min Aik and Jinli Group
Assuming the 90 days trading horizon Min Aik Technology is expected to generate 1.51 times more return on investment than Jinli Group. However, Min Aik is 1.51 times more volatile than Jinli Group Holdings. It trades about 0.04 of its potential returns per unit of risk. Jinli Group Holdings is currently generating about 0.03 per unit of risk. If you would invest 1,686 in Min Aik Technology on September 3, 2024 and sell it today you would earn a total of 664.00 from holding Min Aik Technology or generate 39.38% 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. Jinli Group Holdings
Performance |
| Timeline |
| Min Aik Technology |
| Jinli Group Holdings |
Min Aik and Jinli Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Min Aik and Jinli Group
The main advantage of trading using opposite Min Aik and Jinli Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Min Aik position performs unexpectedly, Jinli Group 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 Jinli Group will offset losses from the drop in Jinli Group's long position.| Min Aik vs. Taiwan Semiconductor Manufacturing | Min Aik vs. Yang Ming Marine | Min Aik vs. ASE Industrial Holding | Min Aik vs. AU Optronics |
| Jinli Group vs. Shui Mu International Co | Jinli Group vs. Les Enphants Co | Jinli Group vs. Victory New Materials | Jinli Group vs. Shinih Enterprise 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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |