Correlation Between Progate and Mirle Automation
Can any of the company-specific risk be diversified away by investing in both Progate 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 Progate and Mirle Automation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Progate Group and Mirle Automation Corp, you can compare the effects of market volatilities on Progate 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 Progate with a short position of Mirle Automation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Progate and Mirle Automation.
Diversification Opportunities for Progate and Mirle Automation
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Progate and Mirle is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Progate Group 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 Progate 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 Progate Group 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 Progate i.e., Progate and Mirle Automation go up and down completely randomly.
Pair Corralation between Progate and Mirle Automation
Assuming the 90 days trading horizon Progate Group is expected to generate 1.49 times more return on investment than Mirle Automation. However, Progate is 1.49 times more volatile than Mirle Automation Corp. It trades about 0.05 of its potential returns per unit of risk. Mirle Automation Corp is currently generating about 0.07 per unit of risk. If you would invest 8,892 in Progate Group on August 26, 2024 and sell it today you would earn a total of 6,658 from holding Progate Group or generate 74.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Progate Group vs. Mirle Automation Corp
Performance |
| Timeline |
| Progate Group |
| Mirle Automation Corp |
Progate and Mirle Automation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Progate and Mirle Automation
The main advantage of trading using opposite Progate and Mirle Automation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Progate 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.| Progate vs. Tai Tung Communication | Progate vs. Kedge Construction Co | Progate vs. Lihtai Construction Enterprise | Progate vs. ReaLy Development Construction |
| Mirle Automation vs. Sunny Friend Environmental | Mirle Automation vs. TTET Union Corp | Mirle Automation vs. ECOVE Environment Corp | Mirle Automation vs. Yulon Finance 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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