Correlation Between MICRONIC MYDATA and Cogent Communications
Can any of the company-specific risk be diversified away by investing in both MICRONIC MYDATA and Cogent Communications 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 MICRONIC MYDATA and Cogent Communications into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MICRONIC MYDATA and Cogent Communications Holdings, you can compare the effects of market volatilities on MICRONIC MYDATA and Cogent Communications 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 MICRONIC MYDATA with a short position of Cogent Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of MICRONIC MYDATA and Cogent Communications.
Diversification Opportunities for MICRONIC MYDATA and Cogent Communications
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between MICRONIC and Cogent is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding MICRONIC MYDATA and Cogent Communications Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cogent Communications and MICRONIC MYDATA 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 MICRONIC MYDATA are associated (or correlated) with Cogent Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cogent Communications has no effect on the direction of MICRONIC MYDATA i.e., MICRONIC MYDATA and Cogent Communications go up and down completely randomly.
Pair Corralation between MICRONIC MYDATA and Cogent Communications
Assuming the 90 days trading horizon MICRONIC MYDATA is expected to generate 1.01 times more return on investment than Cogent Communications. However, MICRONIC MYDATA is 1.01 times more volatile than Cogent Communications Holdings. It trades about -0.01 of its potential returns per unit of risk. Cogent Communications Holdings is currently generating about -0.08 per unit of risk. If you would invest 3,566 in MICRONIC MYDATA on October 11, 2024 and sell it today you would lose (20.00) from holding MICRONIC MYDATA or give up 0.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MICRONIC MYDATA vs. Cogent Communications Holdings
Performance |
| Timeline |
| MICRONIC MYDATA |
| Cogent Communications |
MICRONIC MYDATA and Cogent Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MICRONIC MYDATA and Cogent Communications
The main advantage of trading using opposite MICRONIC MYDATA and Cogent Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MICRONIC MYDATA position performs unexpectedly, Cogent Communications 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 Cogent Communications will offset losses from the drop in Cogent Communications' long position.| MICRONIC MYDATA vs. De Grey Mining | MICRONIC MYDATA vs. GREENX METALS LTD | MICRONIC MYDATA vs. VIVA WINE GROUP | MICRONIC MYDATA vs. CARSALESCOM |
| Cogent Communications vs. NTT DATA | Cogent Communications vs. TERADATA | Cogent Communications vs. Alliance Data Systems | Cogent Communications vs. MICRONIC MYDATA |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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