Correlation Between Coretronic and Mirle Automation
Can any of the company-specific risk be diversified away by investing in both Coretronic and Mirle Automation 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 Coretronic and Mirle Automation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coretronic and Mirle Automation Corp, you can compare the effects of market volatilities on Coretronic and Mirle Automation 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 Coretronic with a short position of Mirle Automation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coretronic and Mirle Automation.
Diversification Opportunities for Coretronic and Mirle Automation
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Coretronic and Mirle is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Coretronic and Mirle Automation Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mirle Automation Corp and Coretronic 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 Coretronic are associated (or correlated) with Mirle Automation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mirle Automation Corp has no effect on the direction of Coretronic i.e., Coretronic and Mirle Automation go up and down completely randomly.
Pair Corralation between Coretronic and Mirle Automation
Assuming the 90 days trading horizon Coretronic is expected to generate 0.88 times more return on investment than Mirle Automation. However, Coretronic is 1.14 times less risky than Mirle Automation. It trades about 0.03 of its potential returns per unit of risk. Mirle Automation Corp is currently generating about 0.0 per unit of risk. If you would invest 7,530 in Coretronic on October 25, 2024 and sell it today you would earn a total of 520.00 from holding Coretronic or generate 6.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
Coretronic vs. Mirle Automation Corp
Performance |
| Timeline |
| Coretronic |
| Mirle Automation Corp |
Coretronic and Mirle Automation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coretronic and Mirle Automation
The main advantage of trading using opposite Coretronic and Mirle Automation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coretronic position performs unexpectedly, Mirle Automation 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 Mirle Automation will offset losses from the drop in Mirle Automation's long position.| Coretronic vs. Qisda Corp | Coretronic vs. AU Optronics | Coretronic vs. Vanguard International Semiconductor | Coretronic vs. Lite On Technology Corp |
| Mirle Automation vs. United Integrated Services | Mirle Automation vs. Greatek Electronics | Mirle Automation vs. Merry Electronics Co | Mirle Automation vs. Transcend Information |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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