Correlation Between Optical Cable and Minim
Can any of the company-specific risk be diversified away by investing in both Optical Cable and Minim 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 Optical Cable and Minim into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Optical Cable and Minim Inc, you can compare the effects of market volatilities on Optical Cable and Minim 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 Optical Cable with a short position of Minim. Check out your portfolio center. Please also check ongoing floating volatility patterns of Optical Cable and Minim.
Diversification Opportunities for Optical Cable and Minim
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Optical and Minim is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Optical Cable and Minim Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Minim Inc and Optical Cable 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 Optical Cable are associated (or correlated) with Minim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Minim Inc has no effect on the direction of Optical Cable i.e., Optical Cable and Minim go up and down completely randomly.
Pair Corralation between Optical Cable and Minim
If you would invest 281.00 in Optical Cable on November 2, 2024 and sell it today you would earn a total of 266.00 from holding Optical Cable or generate 94.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.97% |
| Values | Daily Returns |
Optical Cable vs. Minim Inc
Performance |
| Timeline |
| Optical Cable |
| Minim Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Optical Cable and Minim Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Optical Cable and Minim
The main advantage of trading using opposite Optical Cable and Minim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Optical Cable position performs unexpectedly, Minim 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 Minim will offset losses from the drop in Minim's long position.| Optical Cable vs. Comtech Telecommunications Corp | Optical Cable vs. Silicom | Optical Cable vs. Knowles Cor | Optical Cable vs. Mynaric AG ADR |
| Minim vs. Frequency Electronics | Minim vs. Amplitech Group | Minim vs. Optical Cable | Minim vs. Mobilicom Limited American |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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