Correlation Between Minor International and 51Talk Online
Can any of the company-specific risk be diversified away by investing in both Minor International and 51Talk Online 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 Minor International and 51Talk Online into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Minor International PCL and 51Talk Online Education, you can compare the effects of market volatilities on Minor International and 51Talk Online 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 Minor International with a short position of 51Talk Online. Check out your portfolio center. Please also check ongoing floating volatility patterns of Minor International and 51Talk Online.
Diversification Opportunities for Minor International and 51Talk Online
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Minor and 51Talk is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Minor International PCL and 51Talk Online Education in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 51Talk Online Education and Minor International 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 Minor International PCL are associated (or correlated) with 51Talk Online. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 51Talk Online Education has no effect on the direction of Minor International i.e., Minor International and 51Talk Online go up and down completely randomly.
Pair Corralation between Minor International and 51Talk Online
Assuming the 90 days horizon Minor International PCL is expected to under-perform the 51Talk Online. But the pink sheet apears to be less risky and, when comparing its historical volatility, Minor International PCL is 2.67 times less risky than 51Talk Online. The pink sheet trades about -0.01 of its potential returns per unit of risk. The 51Talk Online Education is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 824.00 in 51Talk Online Education on September 14, 2024 and sell it today you would earn a total of 851.00 from holding 51Talk Online Education or generate 103.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 58.36% |
| Values | Daily Returns |
Minor International PCL vs. 51Talk Online Education
Performance |
| Timeline |
| Minor International PCL |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| 51Talk Online Education |
Minor International and 51Talk Online Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Minor International and 51Talk Online
The main advantage of trading using opposite Minor International and 51Talk Online positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Minor International position performs unexpectedly, 51Talk Online 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 51Talk Online will offset losses from the drop in 51Talk Online's long position.| Minor International vs. Alaska Air Group | Minor International vs. American Airlines Group | Minor International vs. Southwest Airlines | Minor International vs. Delta Air Lines |
| 51Talk Online vs. Wah Fu Education | 51Talk Online vs. Four Seasons Education | 51Talk Online vs. Sunlands Technology Group | 51Talk Online vs. China Liberal Education |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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