Correlation Between Adient PLC and Mingteng International
Can any of the company-specific risk be diversified away by investing in both Adient PLC and Mingteng International 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 Adient PLC and Mingteng International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Adient PLC and Mingteng International, you can compare the effects of market volatilities on Adient PLC and Mingteng International 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 Adient PLC with a short position of Mingteng International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Adient PLC and Mingteng International.
Diversification Opportunities for Adient PLC and Mingteng International
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Adient and Mingteng is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Adient PLC and Mingteng International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mingteng International and Adient PLC 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 Adient PLC are associated (or correlated) with Mingteng International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mingteng International has no effect on the direction of Adient PLC i.e., Adient PLC and Mingteng International go up and down completely randomly.
Pair Corralation between Adient PLC and Mingteng International
Given the investment horizon of 90 days Adient PLC is expected to under-perform the Mingteng International. But the stock apears to be less risky and, when comparing its historical volatility, Adient PLC is 3.45 times less risky than Mingteng International. The stock trades about -0.04 of its potential returns per unit of risk. The Mingteng International is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 350.00 in Mingteng International on September 12, 2024 and sell it today you would earn a total of 224.00 from holding Mingteng International or generate 64.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 33.33% |
| Values | Daily Returns |
Adient PLC vs. Mingteng International
Performance |
| Timeline |
| Adient PLC |
| Mingteng International |
Adient PLC and Mingteng International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Adient PLC and Mingteng International
The main advantage of trading using opposite Adient PLC and Mingteng International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Adient PLC position performs unexpectedly, Mingteng International 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 Mingteng International will offset losses from the drop in Mingteng International's long position.| Adient PLC vs. Cooper Stnd | Adient PLC vs. Motorcar Parts of | Adient PLC vs. American Axle Manufacturing | Adient PLC vs. Stoneridge |
| Mingteng International vs. Ampco Pittsburgh | Mingteng International vs. Tredegar | Mingteng International vs. ESAB Corp | Mingteng International vs. Allegheny Technologies Incorporated |
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.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Transaction History View history of all your transactions and understand their impact on performance |