Correlation Between Meiko Electronics and Peloton Interactive
Can any of the company-specific risk be diversified away by investing in both Meiko Electronics and Peloton Interactive 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 Peloton Interactive 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 Peloton Interactive, you can compare the effects of market volatilities on Meiko Electronics and Peloton Interactive 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 Peloton Interactive. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meiko Electronics and Peloton Interactive.
Diversification Opportunities for Meiko Electronics and Peloton Interactive
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Meiko and Peloton is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Meiko Electronics Co and Peloton Interactive in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Peloton Interactive 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 Peloton Interactive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Peloton Interactive has no effect on the direction of Meiko Electronics i.e., Meiko Electronics and Peloton Interactive go up and down completely randomly.
Pair Corralation between Meiko Electronics and Peloton Interactive
Assuming the 90 days horizon Meiko Electronics Co is expected to generate 1.01 times more return on investment than Peloton Interactive. However, Meiko Electronics is 1.01 times more volatile than Peloton Interactive. It trades about 0.53 of its potential returns per unit of risk. Peloton Interactive is currently generating about 0.29 per unit of risk. If you would invest 3,400 in Meiko Electronics Co on September 4, 2024 and sell it today you would earn a total of 2,400 from holding Meiko Electronics Co or generate 70.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Meiko Electronics Co vs. Peloton Interactive
Performance |
| Timeline |
| Meiko Electronics |
| Peloton Interactive |
Meiko Electronics and Peloton Interactive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Meiko Electronics and Peloton Interactive
The main advantage of trading using opposite Meiko Electronics and Peloton Interactive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meiko Electronics position performs unexpectedly, Peloton Interactive 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 Peloton Interactive will offset losses from the drop in Peloton Interactive's long position.| Meiko Electronics vs. KCE EL PCL | Meiko Electronics vs. Benchmark Electronics | Meiko Electronics vs. Superior Plus Corp | Meiko Electronics vs. NMI Holdings |
| Peloton Interactive vs. Elmos Semiconductor SE | Peloton Interactive vs. Soken Chemical Engineering | Peloton Interactive vs. Sekisui Chemical Co | Peloton Interactive vs. Silicon Motion Technology |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |