Correlation Between Micro Imaging and TOMI Environmental
Can any of the company-specific risk be diversified away by investing in both Micro Imaging and TOMI Environmental 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 Micro Imaging and TOMI Environmental into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Micro Imaging Technology and TOMI Environmental Solutions, you can compare the effects of market volatilities on Micro Imaging and TOMI Environmental 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 Micro Imaging with a short position of TOMI Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Micro Imaging and TOMI Environmental.
Diversification Opportunities for Micro Imaging and TOMI Environmental
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Micro and TOMI is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Micro Imaging Technology and TOMI Environmental Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TOMI Environmental and Micro Imaging 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 Micro Imaging Technology are associated (or correlated) with TOMI Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TOMI Environmental has no effect on the direction of Micro Imaging i.e., Micro Imaging and TOMI Environmental go up and down completely randomly.
Pair Corralation between Micro Imaging and TOMI Environmental
Given the investment horizon of 90 days Micro Imaging Technology is expected to under-perform the TOMI Environmental. But the pink sheet apears to be less risky and, when comparing its historical volatility, Micro Imaging Technology is 1.27 times less risky than TOMI Environmental. The pink sheet trades about -0.06 of its potential returns per unit of risk. The TOMI Environmental Solutions is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 93.00 in TOMI Environmental Solutions on September 4, 2024 and sell it today you would lose (22.00) from holding TOMI Environmental Solutions or give up 23.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Micro Imaging Technology vs. TOMI Environmental Solutions
Performance |
| Timeline |
| Micro Imaging Technology |
| TOMI Environmental |
Micro Imaging and TOMI Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Micro Imaging and TOMI Environmental
The main advantage of trading using opposite Micro Imaging and TOMI Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Micro Imaging position performs unexpectedly, TOMI Environmental 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 TOMI Environmental will offset losses from the drop in TOMI Environmental's long position.| Micro Imaging vs. Emerson Radio | Micro Imaging vs. Stepan Company | Micro Imaging vs. Eastman Chemical | Micro Imaging vs. Playtech plc |
| TOMI Environmental vs. Decision Diagnostics | TOMI Environmental vs. Kronos Advanced Technologies | TOMI Environmental vs. GeoVax Labs | TOMI Environmental vs. Creative Realities |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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