Correlation Between Magni Tech and Uchi Technologies
Can any of the company-specific risk be diversified away by investing in both Magni Tech and Uchi Technologies 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 Magni Tech and Uchi Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Magni Tech Industries and Uchi Technologies Bhd, you can compare the effects of market volatilities on Magni Tech and Uchi Technologies 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 Magni Tech with a short position of Uchi Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Magni Tech and Uchi Technologies.
Diversification Opportunities for Magni Tech and Uchi Technologies
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Magni and Uchi is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Magni Tech Industries and Uchi Technologies Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Uchi Technologies Bhd and Magni Tech 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 Magni Tech Industries are associated (or correlated) with Uchi Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Uchi Technologies Bhd has no effect on the direction of Magni Tech i.e., Magni Tech and Uchi Technologies go up and down completely randomly.
Pair Corralation between Magni Tech and Uchi Technologies
Assuming the 90 days trading horizon Magni Tech Industries is expected to generate 1.95 times more return on investment than Uchi Technologies. However, Magni Tech is 1.95 times more volatile than Uchi Technologies Bhd. It trades about 0.1 of its potential returns per unit of risk. Uchi Technologies Bhd is currently generating about 0.02 per unit of risk. If you would invest 215.00 in Magni Tech Industries on August 31, 2024 and sell it today you would earn a total of 55.00 from holding Magni Tech Industries or generate 25.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Magni Tech Industries vs. Uchi Technologies Bhd
Performance |
| Timeline |
| Magni Tech Industries |
| Uchi Technologies Bhd |
Magni Tech and Uchi Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Magni Tech and Uchi Technologies
The main advantage of trading using opposite Magni Tech and Uchi Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Magni Tech position performs unexpectedly, Uchi Technologies 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 Uchi Technologies will offset losses from the drop in Uchi Technologies' long position.| Magni Tech vs. ES Ceramics Technology | Magni Tech vs. TAS Offshore Bhd | Magni Tech vs. Icon Offshore Bhd | Magni Tech vs. Uchi Technologies Bhd |
| Uchi Technologies vs. Apollo Food Holdings | Uchi Technologies vs. MI Technovation Bhd | Uchi Technologies vs. Cloudpoint Technology Berhad | Uchi Technologies vs. Cengild Medical Berhad |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |