Correlation Between Meiko Electronics and GREENX METALS
Can any of the company-specific risk be diversified away by investing in both Meiko Electronics and GREENX METALS 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 GREENX METALS 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 GREENX METALS LTD, you can compare the effects of market volatilities on Meiko Electronics and GREENX METALS 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 GREENX METALS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meiko Electronics and GREENX METALS.
Diversification Opportunities for Meiko Electronics and GREENX METALS
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Meiko and GREENX is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Meiko Electronics Co and GREENX METALS LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GREENX METALS LTD 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 GREENX METALS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GREENX METALS LTD has no effect on the direction of Meiko Electronics i.e., Meiko Electronics and GREENX METALS go up and down completely randomly.
Pair Corralation between Meiko Electronics and GREENX METALS
Assuming the 90 days horizon Meiko Electronics Co is expected to generate 0.81 times more return on investment than GREENX METALS. However, Meiko Electronics Co is 1.24 times less risky than GREENX METALS. It trades about 0.1 of its potential returns per unit of risk. GREENX METALS LTD is currently generating about -0.02 per unit of risk. If you would invest 3,720 in Meiko Electronics Co on October 18, 2024 and sell it today you would earn a total of 1,630 from holding Meiko Electronics Co or generate 43.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Meiko Electronics Co vs. GREENX METALS LTD
Performance |
| Timeline |
| Meiko Electronics |
| GREENX METALS LTD |
Meiko Electronics and GREENX METALS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Meiko Electronics and GREENX METALS
The main advantage of trading using opposite Meiko Electronics and GREENX METALS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meiko Electronics position performs unexpectedly, GREENX METALS 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 GREENX METALS will offset losses from the drop in GREENX METALS's long position.| Meiko Electronics vs. Addtech AB | Meiko Electronics vs. Air Lease | Meiko Electronics vs. Kingdee International Software | Meiko Electronics vs. WILLIS LEASE FIN |
| GREENX METALS vs. Meiko Electronics Co | GREENX METALS vs. COSMOSTEEL HLDGS | GREENX METALS vs. STORE ELECTRONIC | GREENX METALS 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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