Correlation Between Min Aik and Pili International
Can any of the company-specific risk be diversified away by investing in both Min Aik and Pili International 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 Pili International 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 Pili International Multimedia, you can compare the effects of market volatilities on Min Aik and Pili International 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 Pili International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Min Aik and Pili International.
Diversification Opportunities for Min Aik and Pili International
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Min and Pili is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Min Aik Technology and Pili International Multimedia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pili International 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 Pili International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pili International has no effect on the direction of Min Aik i.e., Min Aik and Pili International go up and down completely randomly.
Pair Corralation between Min Aik and Pili International
Assuming the 90 days trading horizon Min Aik Technology is expected to under-perform the Pili International. In addition to that, Min Aik is 2.05 times more volatile than Pili International Multimedia. It trades about -0.03 of its total potential returns per unit of risk. Pili International Multimedia is currently generating about -0.03 per unit of volatility. If you would invest 2,385 in Pili International Multimedia on October 22, 2024 and sell it today you would lose (40.00) from holding Pili International Multimedia or give up 1.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Min Aik Technology vs. Pili International Multimedia
Performance |
| Timeline |
| Min Aik Technology |
| Pili International |
Min Aik and Pili International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Min Aik and Pili International
The main advantage of trading using opposite Min Aik and Pili International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Min Aik position performs unexpectedly, Pili International 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 Pili International will offset losses from the drop in Pili International's long position.| Min Aik vs. Promise Technology | Min Aik vs. Spirox Corp | Min Aik vs. Zinwell | Min Aik vs. Gigastorage Corp |
| Pili International vs. Phytohealth Corp | Pili International vs. Formosa Chemicals Fibre | Pili International vs. Asustek Computer | Pili International vs. Acelon Chemicals Fiber |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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