Correlation Between Minim and AAC Technologies
Can any of the company-specific risk be diversified away by investing in both Minim and AAC Technologies 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 Minim and AAC Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Minim Inc and AAC Technologies Holdings, you can compare the effects of market volatilities on Minim and AAC Technologies 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 Minim with a short position of AAC Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Minim and AAC Technologies.
Diversification Opportunities for Minim and AAC Technologies
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Minim and AAC is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Minim Inc and AAC Technologies Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AAC Technologies Holdings and Minim 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 Minim Inc are associated (or correlated) with AAC Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AAC Technologies Holdings has no effect on the direction of Minim i.e., Minim and AAC Technologies go up and down completely randomly.
Pair Corralation between Minim and AAC Technologies
If you would invest 459.00 in AAC Technologies Holdings on November 3, 2024 and sell it today you would earn a total of 63.00 from holding AAC Technologies Holdings or generate 13.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Minim Inc vs. AAC Technologies Holdings
Performance |
| Timeline |
| Minim Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| AAC Technologies Holdings |
Minim and AAC Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Minim and AAC Technologies
The main advantage of trading using opposite Minim and AAC Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Minim position performs unexpectedly, AAC Technologies 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 AAC Technologies will offset losses from the drop in AAC Technologies' long position.| Minim vs. Frequency Electronics | Minim vs. Amplitech Group | Minim vs. Optical Cable | Minim vs. Mobilicom Limited American |
| AAC Technologies vs. AmpliTech Group | AAC Technologies vs. AAP Inc | AAC Technologies vs. Airgain | AAC Technologies vs. Amplitech Group |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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