Correlation Between STL Technology and Min Aik
Can any of the company-specific risk be diversified away by investing in both STL Technology and Min Aik 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 STL Technology and Min Aik into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between STL Technology Co and Min Aik Technology, you can compare the effects of market volatilities on STL Technology and Min Aik 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 STL Technology with a short position of Min Aik. Check out your portfolio center. Please also check ongoing floating volatility patterns of STL Technology and Min Aik.
Diversification Opportunities for STL Technology and Min Aik
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between STL and Min is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding STL Technology Co and Min Aik Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Min Aik Technology and STL Technology 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 STL Technology Co are associated (or correlated) with Min Aik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Min Aik Technology has no effect on the direction of STL Technology i.e., STL Technology and Min Aik go up and down completely randomly.
Pair Corralation between STL Technology and Min Aik
Assuming the 90 days trading horizon STL Technology Co is expected to generate 1.85 times more return on investment than Min Aik. However, STL Technology is 1.85 times more volatile than Min Aik Technology. It trades about 0.2 of its potential returns per unit of risk. Min Aik Technology is currently generating about 0.24 per unit of risk. If you would invest 6,710 in STL Technology Co on November 28, 2024 and sell it today you would earn a total of 690.00 from holding STL Technology Co or generate 10.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
STL Technology Co vs. Min Aik Technology
Performance |
| Timeline |
| STL Technology |
| Min Aik Technology |
STL Technology and Min Aik Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with STL Technology and Min Aik
The main advantage of trading using opposite STL Technology and Min Aik positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if STL Technology position performs unexpectedly, Min Aik 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 Min Aik will offset losses from the drop in Min Aik's long position.| STL Technology vs. Simplo Technology Co | STL Technology vs. Dynapack International Technology | STL Technology vs. Celxpert Energy | STL Technology vs. C Tech United |
| Min Aik vs. Promise Technology | Min Aik vs. Spirox Corp | Min Aik vs. Zinwell | Min Aik vs. Gigastorage Corp |
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.
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