Correlation Between Meiko Electronics and COMBA TELECOM
Can any of the company-specific risk be diversified away by investing in both Meiko Electronics and COMBA TELECOM 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 COMBA TELECOM 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 COMBA TELECOM SYST, you can compare the effects of market volatilities on Meiko Electronics and COMBA TELECOM 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 COMBA TELECOM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meiko Electronics and COMBA TELECOM.
Diversification Opportunities for Meiko Electronics and COMBA TELECOM
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Meiko and COMBA is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Meiko Electronics Co and COMBA TELECOM SYST in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COMBA TELECOM SYST 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 COMBA TELECOM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COMBA TELECOM SYST has no effect on the direction of Meiko Electronics i.e., Meiko Electronics and COMBA TELECOM go up and down completely randomly.
Pair Corralation between Meiko Electronics and COMBA TELECOM
Assuming the 90 days horizon Meiko Electronics Co is expected to generate 1.46 times more return on investment than COMBA TELECOM. However, Meiko Electronics is 1.46 times more volatile than COMBA TELECOM SYST. It trades about 0.12 of its potential returns per unit of risk. COMBA TELECOM SYST is currently generating about -0.01 per unit of risk. If you would invest 1,590 in Meiko Electronics Co on August 31, 2024 and sell it today you would earn a total of 3,960 from holding Meiko Electronics Co or generate 249.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.74% |
| Values | Daily Returns |
Meiko Electronics Co vs. COMBA TELECOM SYST
Performance |
| Timeline |
| Meiko Electronics |
| COMBA TELECOM SYST |
Meiko Electronics and COMBA TELECOM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Meiko Electronics and COMBA TELECOM
The main advantage of trading using opposite Meiko Electronics and COMBA TELECOM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meiko Electronics position performs unexpectedly, COMBA TELECOM 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 COMBA TELECOM will offset losses from the drop in COMBA TELECOM's long position.| Meiko Electronics vs. Plexus Corp | Meiko Electronics vs. Superior Plus Corp | Meiko Electronics vs. NMI Holdings | Meiko Electronics vs. Origin Agritech |
| COMBA TELECOM vs. SIVERS SEMICONDUCTORS AB | COMBA TELECOM vs. Darden Restaurants | COMBA TELECOM vs. Reliance Steel Aluminum | COMBA TELECOM vs. Q2M Managementberatung AG |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Stocks Directory Find actively traded stocks across global markets | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |