Correlation Between Vow ASA and Micro Imaging
Can any of the company-specific risk be diversified away by investing in both Vow ASA and Micro Imaging 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 Vow ASA and Micro Imaging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vow ASA and Micro Imaging Technology, you can compare the effects of market volatilities on Vow ASA and Micro Imaging 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 Vow ASA with a short position of Micro Imaging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vow ASA and Micro Imaging.
Diversification Opportunities for Vow ASA and Micro Imaging
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Vow and Micro is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Vow ASA and Micro Imaging Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Micro Imaging Technology and Vow ASA 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 Vow ASA are associated (or correlated) with Micro Imaging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Micro Imaging Technology has no effect on the direction of Vow ASA i.e., Vow ASA and Micro Imaging go up and down completely randomly.
Pair Corralation between Vow ASA and Micro Imaging
Assuming the 90 days horizon Vow ASA is expected to under-perform the Micro Imaging. In addition to that, Vow ASA is 1.11 times more volatile than Micro Imaging Technology. It trades about -0.1 of its total potential returns per unit of risk. Micro Imaging Technology is currently generating about -0.09 per unit of volatility. If you would invest 0.03 in Micro Imaging Technology on September 3, 2024 and sell it today you would lose (0.02) from holding Micro Imaging Technology or give up 66.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vow ASA vs. Micro Imaging Technology
Performance |
| Timeline |
| Vow ASA |
| Micro Imaging Technology |
Vow ASA and Micro Imaging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vow ASA and Micro Imaging
The main advantage of trading using opposite Vow ASA and Micro Imaging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vow ASA position performs unexpectedly, Micro Imaging 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 Micro Imaging will offset losses from the drop in Micro Imaging's long position.| Vow ASA vs. Delta CleanTech | Vow ASA vs. CO2 Solutions | Vow ASA vs. TOMI Environmental Solutions | Vow ASA vs. Zurn Elkay Water |
| Micro Imaging vs. TOMI Environmental Solutions | Micro Imaging vs. SCOR PK | Micro Imaging vs. HUMANA INC | Micro Imaging vs. Aquagold International |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |