Correlation Between M Tron and Inrad Optics
Can any of the company-specific risk be diversified away by investing in both M Tron and Inrad Optics 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 M Tron and Inrad Optics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between M tron Industries and Inrad Optics, you can compare the effects of market volatilities on M Tron and Inrad Optics 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 M Tron with a short position of Inrad Optics. Check out your portfolio center. Please also check ongoing floating volatility patterns of M Tron and Inrad Optics.
Diversification Opportunities for M Tron and Inrad Optics
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MPTI and Inrad is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding M tron Industries and Inrad Optics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inrad Optics and M Tron 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 M tron Industries are associated (or correlated) with Inrad Optics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inrad Optics has no effect on the direction of M Tron i.e., M Tron and Inrad Optics go up and down completely randomly.
Pair Corralation between M Tron and Inrad Optics
If you would invest 5,325 in M tron Industries on October 20, 2024 and sell it today you would earn a total of 217.00 from holding M tron Industries or generate 4.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 5.26% |
| Values | Daily Returns |
M tron Industries vs. Inrad Optics
Performance |
| Timeline |
| M tron Industries |
| Inrad Optics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
M Tron and Inrad Optics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with M Tron and Inrad Optics
The main advantage of trading using opposite M Tron and Inrad Optics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if M Tron position performs unexpectedly, Inrad Optics 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 Inrad Optics will offset losses from the drop in Inrad Optics' long position.| M Tron vs. Ieh Corp | M Tron vs. Deswell Industries | M Tron vs. Methode Electronics | M Tron vs. Richardson Electronics |
| Inrad Optics vs. M tron Industries | Inrad Optics vs. Ieh Corp | Inrad Optics vs. Deswell Industries | Inrad Optics vs. LSI Industries |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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