Correlation Between MIC Electronics and Royal Orchid
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By analyzing existing cross correlation between MIC Electronics Limited and Royal Orchid Hotels, you can compare the effects of market volatilities on MIC Electronics and Royal Orchid 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 MIC Electronics with a short position of Royal Orchid. Check out your portfolio center. Please also check ongoing floating volatility patterns of MIC Electronics and Royal Orchid.
Diversification Opportunities for MIC Electronics and Royal Orchid
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between MIC and Royal is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding MIC Electronics Limited and Royal Orchid Hotels in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Royal Orchid Hotels and MIC 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 MIC Electronics Limited are associated (or correlated) with Royal Orchid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Royal Orchid Hotels has no effect on the direction of MIC Electronics i.e., MIC Electronics and Royal Orchid go up and down completely randomly.
Pair Corralation between MIC Electronics and Royal Orchid
Assuming the 90 days trading horizon MIC Electronics Limited is expected to generate 1.19 times more return on investment than Royal Orchid. However, MIC Electronics is 1.19 times more volatile than Royal Orchid Hotels. It trades about -0.04 of its potential returns per unit of risk. Royal Orchid Hotels is currently generating about -0.05 per unit of risk. If you would invest 8,631 in MIC Electronics Limited on August 29, 2024 and sell it today you would lose (248.00) from holding MIC Electronics Limited or give up 2.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MIC Electronics Limited vs. Royal Orchid Hotels
Performance |
| Timeline |
| MIC Electronics |
| Royal Orchid Hotels |
MIC Electronics and Royal Orchid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MIC Electronics and Royal Orchid
The main advantage of trading using opposite MIC Electronics and Royal Orchid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MIC Electronics position performs unexpectedly, Royal Orchid 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 Royal Orchid will offset losses from the drop in Royal Orchid's long position.| MIC Electronics vs. Speciality Restaurants Limited | MIC Electronics vs. Compucom Software Limited | MIC Electronics vs. Manaksia Steels Limited | MIC Electronics vs. BF Utilities Limited |
| Royal Orchid vs. MMTC Limited | Royal Orchid vs. Kingfa Science Technology | Royal Orchid vs. Rico Auto Industries | Royal Orchid vs. GACM Technologies Limited |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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