Correlation Between TUL and Min Aik
Can any of the company-specific risk be diversified away by investing in both TUL 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 TUL and Min Aik into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TUL Corporation and Min Aik Technology, you can compare the effects of market volatilities on TUL 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 TUL with a short position of Min Aik. Check out your portfolio center. Please also check ongoing floating volatility patterns of TUL and Min Aik.
Diversification Opportunities for TUL and Min Aik
Very good diversification
The 3 months correlation between TUL and Min is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding TUL Corp. 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 TUL 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 TUL Corporation 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 TUL i.e., TUL and Min Aik go up and down completely randomly.
Pair Corralation between TUL and Min Aik
Assuming the 90 days trading horizon TUL Corporation is expected to generate 1.04 times more return on investment than Min Aik. However, TUL is 1.04 times more volatile than Min Aik Technology. It trades about -0.01 of its potential returns per unit of risk. Min Aik Technology is currently generating about -0.07 per unit of risk. If you would invest 7,920 in TUL Corporation on September 5, 2024 and sell it today you would lose (600.00) from holding TUL Corporation or give up 7.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TUL Corp. vs. Min Aik Technology
Performance |
| Timeline |
| TUL Corporation |
| Min Aik Technology |
TUL and Min Aik Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TUL and Min Aik
The main advantage of trading using opposite TUL and Min Aik positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TUL 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.| TUL vs. Min Aik Technology | TUL vs. Vate Technology Co | TUL vs. Grand Ocean Retail | TUL vs. Siward Crystal Technology |
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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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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