Correlation Between Biofil Chemicals and MIC Electronics
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By analyzing existing cross correlation between Biofil Chemicals Pharmaceuticals and MIC Electronics Limited, you can compare the effects of market volatilities on Biofil Chemicals 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 Biofil Chemicals with a short position of MIC Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biofil Chemicals and MIC Electronics.
Diversification Opportunities for Biofil Chemicals and MIC Electronics
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Biofil and MIC is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Biofil Chemicals Pharmaceutica and MIC Electronics Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MIC Electronics and Biofil Chemicals 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 Biofil Chemicals Pharmaceuticals 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 Biofil Chemicals i.e., Biofil Chemicals and MIC Electronics go up and down completely randomly.
Pair Corralation between Biofil Chemicals and MIC Electronics
Assuming the 90 days trading horizon Biofil Chemicals is expected to generate 6.65 times less return on investment than MIC Electronics. But when comparing it to its historical volatility, Biofil Chemicals Pharmaceuticals is 1.08 times less risky than MIC Electronics. It trades about 0.02 of its potential returns per unit of risk. MIC Electronics Limited is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 1,180 in MIC Electronics Limited on December 8, 2024 and sell it today you would earn a total of 4,935 from holding MIC Electronics Limited or generate 418.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.66% |
| Values | Daily Returns |
Biofil Chemicals Pharmaceutica vs. MIC Electronics Limited
Performance |
| Timeline |
| Biofil Chemicals Pha |
| MIC Electronics |
Biofil Chemicals and MIC Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Biofil Chemicals and MIC Electronics
The main advantage of trading using opposite Biofil Chemicals and MIC Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biofil Chemicals 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.| Biofil Chemicals vs. Baazar Style Retail | ||
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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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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