Correlation Between Miura and IHI Corp
Can any of the company-specific risk be diversified away by investing in both Miura and IHI Corp 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 Miura and IHI Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Miura Co and IHI Corp ADR, you can compare the effects of market volatilities on Miura and IHI Corp 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 Miura with a short position of IHI Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Miura and IHI Corp.
Diversification Opportunities for Miura and IHI Corp
Pay attention - limited upside
The 3 months correlation between Miura and IHI is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Miura Co and IHI Corp ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IHI Corp ADR and Miura 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 Miura Co are associated (or correlated) with IHI Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IHI Corp ADR has no effect on the direction of Miura i.e., Miura and IHI Corp go up and down completely randomly.
Pair Corralation between Miura and IHI Corp
If you would invest 1,060 in IHI Corp ADR on November 28, 2024 and sell it today you would earn a total of 399.00 from holding IHI Corp ADR or generate 37.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Miura Co vs. IHI Corp ADR
Performance |
| Timeline |
| Miura |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| IHI Corp ADR |
Miura and IHI Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Miura and IHI Corp
The main advantage of trading using opposite Miura and IHI Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Miura position performs unexpectedly, IHI Corp 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 IHI Corp will offset losses from the drop in IHI Corp's long position.| Miura vs. IHI Corp ADR | Miura vs. Clean Energy Technologies, | Miura vs. Heidelberger Druckmaschinen AG | Miura vs. Sandvik AB ADR |
| IHI Corp vs. Sandvik AB ADR | IHI Corp vs. Schneider Electric SA | IHI Corp vs. Fanuc | IHI Corp vs. Rockwell Automation |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |