Correlation Between Mohawk Industries and Viomi Technology
Can any of the company-specific risk be diversified away by investing in both Mohawk Industries and Viomi Technology 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 Mohawk Industries and Viomi Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mohawk Industries and Viomi Technology ADR, you can compare the effects of market volatilities on Mohawk Industries and Viomi Technology 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 Mohawk Industries with a short position of Viomi Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mohawk Industries and Viomi Technology.
Diversification Opportunities for Mohawk Industries and Viomi Technology
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mohawk and Viomi is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Mohawk Industries and Viomi Technology ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Viomi Technology ADR and Mohawk Industries 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 Mohawk Industries are associated (or correlated) with Viomi Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Viomi Technology ADR has no effect on the direction of Mohawk Industries i.e., Mohawk Industries and Viomi Technology go up and down completely randomly.
Pair Corralation between Mohawk Industries and Viomi Technology
Considering the 90-day investment horizon Mohawk Industries is expected to generate 0.35 times more return on investment than Viomi Technology. However, Mohawk Industries is 2.83 times less risky than Viomi Technology. It trades about -0.03 of its potential returns per unit of risk. Viomi Technology ADR is currently generating about -0.06 per unit of risk. If you would invest 11,252 in Mohawk Industries on January 10, 2025 and sell it today you would lose (357.00) from holding Mohawk Industries or give up 3.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mohawk Industries vs. Viomi Technology ADR
Performance |
| Timeline |
| Mohawk Industries |
| Viomi Technology ADR |
Mohawk Industries and Viomi Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mohawk Industries and Viomi Technology
The main advantage of trading using opposite Mohawk Industries and Viomi Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mohawk Industries position performs unexpectedly, Viomi Technology 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 Viomi Technology will offset losses from the drop in Viomi Technology's long position.| Mohawk Industries vs. Bassett Furniture Industries | Mohawk Industries vs. Ethan Allen Interiors | Mohawk Industries vs. Natuzzi SpA | Mohawk Industries vs. Flexsteel Industries |
| Viomi Technology vs. Flexsteel Industries | Viomi Technology vs. Hamilton Beach Brands | Viomi Technology vs. Natuzzi SpA | Viomi Technology vs. Crown Crafts |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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