Correlation Between ADF Foods and MIC Electronics
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By analyzing existing cross correlation between ADF Foods Limited and MIC Electronics Limited, you can compare the effects of market volatilities on ADF Foods and MIC Electronics 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 ADF Foods with a short position of MIC Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of ADF Foods and MIC Electronics.
Diversification Opportunities for ADF Foods and MIC Electronics
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ADF and MIC is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ADF Foods Limited and MIC Electronics Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MIC Electronics and ADF Foods 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 ADF Foods Limited are associated (or correlated) with MIC Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MIC Electronics has no effect on the direction of ADF Foods i.e., ADF Foods and MIC Electronics go up and down completely randomly.
Pair Corralation between ADF Foods and MIC Electronics
Assuming the 90 days trading horizon ADF Foods Limited is expected to generate 1.22 times more return on investment than MIC Electronics. However, ADF Foods is 1.22 times more volatile than MIC Electronics Limited. It trades about 0.22 of its potential returns per unit of risk. MIC Electronics Limited is currently generating about -0.21 per unit of risk. If you would invest 29,821 in ADF Foods Limited on September 1, 2024 and sell it today you would earn a total of 3,444 from holding ADF Foods Limited or generate 11.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ADF Foods Limited vs. MIC Electronics Limited
Performance |
| Timeline |
| ADF Foods Limited |
| MIC Electronics |
ADF Foods and MIC Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ADF Foods and MIC Electronics
The main advantage of trading using opposite ADF Foods and MIC Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ADF Foods position performs unexpectedly, MIC Electronics 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 MIC Electronics will offset losses from the drop in MIC Electronics' long position.| ADF Foods vs. Kingfa Science Technology | ADF Foods vs. Rico Auto Industries | ADF Foods vs. GACM Technologies Limited | ADF Foods vs. COSMO FIRST LIMITED |
| MIC Electronics vs. V2 Retail Limited | MIC Electronics vs. V Mart Retail Limited | MIC Electronics vs. Osia Hyper Retail | MIC Electronics vs. Praxis Home Retail |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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