Correlation Between Minim and Frequency Electronics
Can any of the company-specific risk be diversified away by investing in both Minim and Frequency Electronics 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 Frequency Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Minim Inc and Frequency Electronics, you can compare the effects of market volatilities on Minim and Frequency Electronics 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 Frequency Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Minim and Frequency Electronics.
Diversification Opportunities for Minim and Frequency Electronics
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Minim and Frequency is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Minim Inc and Frequency Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Frequency Electronics 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 Frequency Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Frequency Electronics has no effect on the direction of Minim i.e., Minim and Frequency Electronics go up and down completely randomly.
Pair Corralation between Minim and Frequency Electronics
If you would invest 261.00 in Minim Inc on November 3, 2024 and sell it today you would earn a total of 0.00 from holding Minim Inc or generate 0.0% 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. Frequency Electronics
Performance |
| Timeline |
| Minim Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Frequency Electronics |
Minim and Frequency Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Minim and Frequency Electronics
The main advantage of trading using opposite Minim and Frequency Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Minim position performs unexpectedly, Frequency Electronics 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 Frequency Electronics will offset losses from the drop in Frequency Electronics' long position.| Minim vs. Frequency Electronics | Minim vs. Amplitech Group | Minim vs. Optical Cable | Minim vs. Mobilicom Limited American |
| Frequency Electronics vs. BK Technologies | Frequency Electronics vs. Actelis Networks | Frequency Electronics vs. Lantronix | Frequency Electronics vs. KVH Industries |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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