Correlation Between Simplo Technology and Min Aik
Can any of the company-specific risk be diversified away by investing in both Simplo 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 Simplo 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 Simplo Technology Co and Min Aik Technology, you can compare the effects of market volatilities on Simplo 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 Simplo Technology with a short position of Min Aik. Check out your portfolio center. Please also check ongoing floating volatility patterns of Simplo Technology and Min Aik.
Diversification Opportunities for Simplo Technology and Min Aik
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Simplo and Min is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Simplo 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 Simplo 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 Simplo 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 Simplo Technology i.e., Simplo Technology and Min Aik go up and down completely randomly.
Pair Corralation between Simplo Technology and Min Aik
Assuming the 90 days trading horizon Simplo Technology is expected to generate 1.5 times less return on investment than Min Aik. But when comparing it to its historical volatility, Simplo Technology Co is 1.21 times less risky than Min Aik. It trades about 0.2 of its potential returns per unit of risk. Min Aik Technology is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 2,315 in Min Aik Technology on November 28, 2024 and sell it today you would earn a total of 160.00 from holding Min Aik Technology or generate 6.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Simplo Technology Co vs. Min Aik Technology
Performance |
| Timeline |
| Simplo Technology |
| Min Aik Technology |
Simplo Technology and Min Aik Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Simplo Technology and Min Aik
The main advantage of trading using opposite Simplo Technology and Min Aik positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Simplo 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.| Simplo Technology vs. Dynapack International Technology | Simplo Technology vs. Catcher Technology Co | Simplo Technology vs. Delta Electronics | Simplo Technology vs. Powertech Technology |
| 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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