Correlation Between Mechema Chemicals and Antec
Can any of the company-specific risk be diversified away by investing in both Mechema Chemicals and Antec 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 Mechema Chemicals and Antec into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mechema Chemicals Int and Antec Inc, you can compare the effects of market volatilities on Mechema Chemicals and Antec 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 Mechema Chemicals with a short position of Antec. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mechema Chemicals and Antec.
Diversification Opportunities for Mechema Chemicals and Antec
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Mechema and Antec is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Mechema Chemicals Int and Antec Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Antec Inc and Mechema Chemicals 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 Mechema Chemicals Int are associated (or correlated) with Antec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Antec Inc has no effect on the direction of Mechema Chemicals i.e., Mechema Chemicals and Antec go up and down completely randomly.
Pair Corralation between Mechema Chemicals and Antec
Assuming the 90 days trading horizon Mechema Chemicals Int is expected to generate 0.73 times more return on investment than Antec. However, Mechema Chemicals Int is 1.37 times less risky than Antec. It trades about -0.02 of its potential returns per unit of risk. Antec Inc is currently generating about -0.2 per unit of risk. If you would invest 7,460 in Mechema Chemicals Int on September 3, 2024 and sell it today you would lose (460.00) from holding Mechema Chemicals Int or give up 6.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mechema Chemicals Int vs. Antec Inc
Performance |
| Timeline |
| Mechema Chemicals Int |
| Antec Inc |
Mechema Chemicals and Antec Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mechema Chemicals and Antec
The main advantage of trading using opposite Mechema Chemicals and Antec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mechema Chemicals position performs unexpectedly, Antec 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 Antec will offset losses from the drop in Antec's long position.| Mechema Chemicals vs. Delta Electronics | Mechema Chemicals vs. China Steel Chemical | Mechema Chemicals vs. WiseChip Semiconductor | Mechema Chemicals vs. Novatek Microelectronics Corp |
| Antec vs. Ma Kuang Healthcare | Antec vs. Chander Electronics Corp | Antec vs. Taiwan Chinsan Electronic | Antec vs. Microelectronics Technology |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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