Correlation Between Minerals Technologies and Acm Research
Can any of the company-specific risk be diversified away by investing in both Minerals Technologies and Acm Research 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 Minerals Technologies and Acm Research into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Minerals Technologies and Acm Research, you can compare the effects of market volatilities on Minerals Technologies and Acm Research 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 Minerals Technologies with a short position of Acm Research. Check out your portfolio center. Please also check ongoing floating volatility patterns of Minerals Technologies and Acm Research.
Diversification Opportunities for Minerals Technologies and Acm Research
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Minerals and Acm is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Minerals Technologies and Acm Research in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acm Research and Minerals Technologies 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 Minerals Technologies are associated (or correlated) with Acm Research. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acm Research has no effect on the direction of Minerals Technologies i.e., Minerals Technologies and Acm Research go up and down completely randomly.
Pair Corralation between Minerals Technologies and Acm Research
Considering the 90-day investment horizon Minerals Technologies is expected to under-perform the Acm Research. But the stock apears to be less risky and, when comparing its historical volatility, Minerals Technologies is 4.82 times less risky than Acm Research. The stock trades about -0.24 of its potential returns per unit of risk. The Acm Research is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 2,336 in Acm Research on December 10, 2024 and sell it today you would earn a total of 270.00 from holding Acm Research or generate 11.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Minerals Technologies vs. Acm Research
Performance |
| Timeline |
| Minerals Technologies |
| Acm Research |
Minerals Technologies and Acm Research Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Minerals Technologies and Acm Research
The main advantage of trading using opposite Minerals Technologies and Acm Research positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Minerals Technologies position performs unexpectedly, Acm Research 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 Acm Research will offset losses from the drop in Acm Research's long position.| Minerals Technologies vs. Quaker Chemical | Minerals Technologies vs. Innospec | Minerals Technologies vs. H B Fuller | Minerals Technologies vs. Cabot |
| Acm Research vs. Axcelis Technologies | Acm Research vs. inTest | Acm Research vs. Lam Research Corp | Acm Research vs. Photronics |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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