Correlation Between Meiko Electronics and Virtu Financial
Can any of the company-specific risk be diversified away by investing in both Meiko Electronics and Virtu Financial 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 Meiko Electronics and Virtu Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Meiko Electronics Co and Virtu Financial, you can compare the effects of market volatilities on Meiko Electronics and Virtu Financial 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 Meiko Electronics with a short position of Virtu Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meiko Electronics and Virtu Financial.
Diversification Opportunities for Meiko Electronics and Virtu Financial
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Meiko and Virtu is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Meiko Electronics Co and Virtu Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Virtu Financial and Meiko 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 Meiko Electronics Co are associated (or correlated) with Virtu Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Virtu Financial has no effect on the direction of Meiko Electronics i.e., Meiko Electronics and Virtu Financial go up and down completely randomly.
Pair Corralation between Meiko Electronics and Virtu Financial
Assuming the 90 days horizon Meiko Electronics Co is expected to under-perform the Virtu Financial. But the stock apears to be less risky and, when comparing its historical volatility, Meiko Electronics Co is 1.27 times less risky than Virtu Financial. The stock trades about -0.27 of its potential returns per unit of risk. The Virtu Financial is currently generating about -0.08 of returns per unit of risk over similar time horizon. If you would invest 3,480 in Virtu Financial on October 14, 2024 and sell it today you would lose (100.00) from holding Virtu Financial or give up 2.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Meiko Electronics Co vs. Virtu Financial
Performance |
| Timeline |
| Meiko Electronics |
| Virtu Financial |
Meiko Electronics and Virtu Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Meiko Electronics and Virtu Financial
The main advantage of trading using opposite Meiko Electronics and Virtu Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meiko Electronics position performs unexpectedly, Virtu Financial 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 Virtu Financial will offset losses from the drop in Virtu Financial's long position.| Meiko Electronics vs. Corporate Travel Management | Meiko Electronics vs. EBRO FOODS | Meiko Electronics vs. LANDSEA GREEN MANAGEMENT | Meiko Electronics vs. United Natural Foods |
| Virtu Financial vs. GEELY AUTOMOBILE | Virtu Financial vs. Benchmark Electronics | Virtu Financial vs. Meiko Electronics Co | Virtu Financial vs. STMICROELECTRONICS |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |