Correlation Between Maris Tech and SigmaTron International
Can any of the company-specific risk be diversified away by investing in both Maris Tech and SigmaTron International 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 Maris Tech and SigmaTron International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Maris Tech and SigmaTron International, you can compare the effects of market volatilities on Maris Tech and SigmaTron International 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 Maris Tech with a short position of SigmaTron International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maris Tech and SigmaTron International.
Diversification Opportunities for Maris Tech and SigmaTron International
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Maris and SigmaTron is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Maris Tech and SigmaTron International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SigmaTron International and Maris Tech 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 Maris Tech are associated (or correlated) with SigmaTron International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SigmaTron International has no effect on the direction of Maris Tech i.e., Maris Tech and SigmaTron International go up and down completely randomly.
Pair Corralation between Maris Tech and SigmaTron International
Given the investment horizon of 90 days Maris Tech is expected to generate 0.62 times more return on investment than SigmaTron International. However, Maris Tech is 1.6 times less risky than SigmaTron International. It trades about 0.08 of its potential returns per unit of risk. SigmaTron International is currently generating about -0.04 per unit of risk. If you would invest 134.00 in Maris Tech on August 24, 2024 and sell it today you would earn a total of 41.00 from holding Maris Tech or generate 30.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
Maris Tech vs. SigmaTron International
Performance |
| Timeline |
| Maris Tech |
| SigmaTron International |
Maris Tech and SigmaTron International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maris Tech and SigmaTron International
The main advantage of trading using opposite Maris Tech and SigmaTron International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maris Tech position performs unexpectedly, SigmaTron International 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 SigmaTron International will offset losses from the drop in SigmaTron International's long position.| Maris Tech vs. Methode Electronics | Maris Tech vs. LightPath Technologies | Maris Tech vs. Interlink Electronics | Maris Tech vs. SigmaTron International |
| SigmaTron International vs. Integrated Media Technology | SigmaTron International vs. Data IO | SigmaTron International vs. Research Frontiers Incorporated | SigmaTron International vs. Maris Tech |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |