Correlation Between AAC Technologies and Minim
Can any of the company-specific risk be diversified away by investing in both AAC Technologies and Minim 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 AAC Technologies and Minim into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AAC Technologies Holdings and Minim Inc, you can compare the effects of market volatilities on AAC Technologies and Minim 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 AAC Technologies with a short position of Minim. Check out your portfolio center. Please also check ongoing floating volatility patterns of AAC Technologies and Minim.
Diversification Opportunities for AAC Technologies and Minim
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AAC and Minim is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding AAC Technologies Holdings and Minim Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Minim Inc and AAC Technologies 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 AAC Technologies Holdings are associated (or correlated) with Minim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Minim Inc has no effect on the direction of AAC Technologies i.e., AAC Technologies and Minim go up and down completely randomly.
Pair Corralation between AAC Technologies and Minim
Assuming the 90 days horizon AAC Technologies Holdings is expected to generate 0.54 times more return on investment than Minim. However, AAC Technologies Holdings is 1.86 times less risky than Minim. It trades about 0.1 of its potential returns per unit of risk. Minim Inc is currently generating about -0.07 per unit of risk. If you would invest 308.00 in AAC Technologies Holdings on September 2, 2024 and sell it today you would earn a total of 138.00 from holding AAC Technologies Holdings or generate 44.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 28.57% |
| Values | Daily Returns |
AAC Technologies Holdings vs. Minim Inc
Performance |
| Timeline |
| AAC Technologies Holdings |
| Minim Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
AAC Technologies and Minim Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AAC Technologies and Minim
The main advantage of trading using opposite AAC Technologies and Minim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AAC Technologies position performs unexpectedly, Minim 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 Minim will offset losses from the drop in Minim's long position.| AAC Technologies vs. AmpliTech Group | AAC Technologies vs. AAP Inc | AAC Technologies vs. Airgain | AAC Technologies vs. Amplitech Group |
| Minim vs. Frequency Electronics | Minim vs. Amplitech Group | Minim vs. Optical Cable | Minim vs. Mobilicom Limited American |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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