Correlation Between Frequency Electronics and Minim
Can any of the company-specific risk be diversified away by investing in both Frequency Electronics 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 Frequency Electronics and Minim into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Frequency Electronics and Minim Inc, you can compare the effects of market volatilities on Frequency Electronics 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 Frequency Electronics with a short position of Minim. Check out your portfolio center. Please also check ongoing floating volatility patterns of Frequency Electronics and Minim.
Diversification Opportunities for Frequency Electronics and Minim
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Frequency and Minim is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Frequency Electronics and Minim Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Minim Inc and Frequency Electronics 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 Frequency Electronics 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 Frequency Electronics i.e., Frequency Electronics and Minim go up and down completely randomly.
Pair Corralation between Frequency Electronics and Minim
If you would invest 1,226 in Frequency Electronics on August 24, 2024 and sell it today you would earn a total of 104.00 from holding Frequency Electronics or generate 8.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.35% |
| Values | Daily Returns |
Frequency Electronics vs. Minim Inc
Performance |
| Timeline |
| Frequency Electronics |
| Minim Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Frequency Electronics and Minim Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Frequency Electronics and Minim
The main advantage of trading using opposite Frequency Electronics and Minim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Frequency Electronics 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.| Frequency Electronics vs. BK Technologies | Frequency Electronics vs. Actelis Networks | Frequency Electronics vs. Lantronix | Frequency Electronics vs. KVH Industries |
| 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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