Correlation Between Chicony Power and Mirle Automation
Can any of the company-specific risk be diversified away by investing in both Chicony Power 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 Chicony Power and Mirle Automation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chicony Power Technology and Mirle Automation Corp, you can compare the effects of market volatilities on Chicony Power 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 Chicony Power with a short position of Mirle Automation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chicony Power and Mirle Automation.
Diversification Opportunities for Chicony Power and Mirle Automation
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Chicony and Mirle is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Chicony Power Technology 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 Chicony Power 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 Chicony Power Technology 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 Chicony Power i.e., Chicony Power and Mirle Automation go up and down completely randomly.
Pair Corralation between Chicony Power and Mirle Automation
Assuming the 90 days trading horizon Chicony Power Technology is expected to under-perform the Mirle Automation. But the stock apears to be less risky and, when comparing its historical volatility, Chicony Power Technology is 1.54 times less risky than Mirle Automation. The stock trades about -0.01 of its potential returns per unit of risk. The Mirle Automation Corp is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 7,800 in Mirle Automation Corp on October 25, 2024 and sell it today you would lose (530.00) from holding Mirle Automation Corp or give up 6.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Chicony Power Technology vs. Mirle Automation Corp
Performance |
| Timeline |
| Chicony Power Technology |
| Mirle Automation Corp |
Chicony Power and Mirle Automation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chicony Power and Mirle Automation
The main advantage of trading using opposite Chicony Power and Mirle Automation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chicony Power 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.| Chicony Power vs. Li Kang Biomedical | Chicony Power vs. Air Asia Co | Chicony Power vs. MediaTek | Chicony Power vs. International CSRC Investment |
| 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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