Correlation Between Minim and Optical Cable
Can any of the company-specific risk be diversified away by investing in both Minim and Optical Cable 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 Optical Cable into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Minim Inc and Optical Cable, you can compare the effects of market volatilities on Minim and Optical Cable 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 Optical Cable. Check out your portfolio center. Please also check ongoing floating volatility patterns of Minim and Optical Cable.
Diversification Opportunities for Minim and Optical Cable
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Minim and Optical is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Minim Inc and Optical Cable in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Optical Cable 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 Optical Cable. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Optical Cable has no effect on the direction of Minim i.e., Minim and Optical Cable go up and down completely randomly.
Pair Corralation between Minim and Optical Cable
If you would invest 435.00 in Optical Cable on November 3, 2024 and sell it today you would earn a total of 58.00 from holding Optical Cable or generate 13.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Minim Inc vs. Optical Cable
Performance |
| Timeline |
| Minim Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Optical Cable |
Minim and Optical Cable Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Minim and Optical Cable
The main advantage of trading using opposite Minim and Optical Cable positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Minim position performs unexpectedly, Optical Cable 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 Optical Cable will offset losses from the drop in Optical Cable's long position.| Minim vs. Frequency Electronics | Minim vs. Amplitech Group | Minim vs. Optical Cable | Minim vs. Mobilicom Limited American |
| Optical Cable vs. KVH Industries | Optical Cable vs. Knowles Cor | Optical Cable vs. Comtech Telecommunications Corp | Optical Cable vs. Lantronix |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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