Correlation Between Caseys General and MICRONIC MYDATA
Can any of the company-specific risk be diversified away by investing in both Caseys General and MICRONIC MYDATA 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 Caseys General and MICRONIC MYDATA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Caseys General Stores and MICRONIC MYDATA, you can compare the effects of market volatilities on Caseys General and MICRONIC MYDATA 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 Caseys General with a short position of MICRONIC MYDATA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Caseys General and MICRONIC MYDATA.
Diversification Opportunities for Caseys General and MICRONIC MYDATA
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Caseys and MICRONIC is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Caseys General Stores and MICRONIC MYDATA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MICRONIC MYDATA and Caseys General 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 Caseys General Stores are associated (or correlated) with MICRONIC MYDATA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MICRONIC MYDATA has no effect on the direction of Caseys General i.e., Caseys General and MICRONIC MYDATA go up and down completely randomly.
Pair Corralation between Caseys General and MICRONIC MYDATA
Assuming the 90 days trading horizon Caseys General Stores is expected to generate 0.73 times more return on investment than MICRONIC MYDATA. However, Caseys General Stores is 1.36 times less risky than MICRONIC MYDATA. It trades about 0.12 of its potential returns per unit of risk. MICRONIC MYDATA is currently generating about 0.08 per unit of risk. If you would invest 20,207 in Caseys General Stores on September 4, 2024 and sell it today you would earn a total of 19,793 from holding Caseys General Stores or generate 97.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Caseys General Stores vs. MICRONIC MYDATA
Performance |
| Timeline |
| Caseys General Stores |
| MICRONIC MYDATA |
Caseys General and MICRONIC MYDATA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Caseys General and MICRONIC MYDATA
The main advantage of trading using opposite Caseys General and MICRONIC MYDATA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Caseys General position performs unexpectedly, MICRONIC MYDATA 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 MICRONIC MYDATA will offset losses from the drop in MICRONIC MYDATA's long position.| Caseys General vs. Apple Inc | Caseys General vs. Apple Inc | Caseys General vs. Apple Inc | Caseys General vs. Apple Inc |
| MICRONIC MYDATA vs. TOTAL GABON | MICRONIC MYDATA vs. Walgreens Boots Alliance | MICRONIC MYDATA vs. Peak Resources Limited |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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