Correlation Between ASPEN TECHINC and MIE HOLDINGS
Can any of the company-specific risk be diversified away by investing in both ASPEN TECHINC and MIE HOLDINGS 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 ASPEN TECHINC and MIE HOLDINGS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ASPEN TECHINC DL and MIE HOLDINGS, you can compare the effects of market volatilities on ASPEN TECHINC and MIE HOLDINGS 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 ASPEN TECHINC with a short position of MIE HOLDINGS. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASPEN TECHINC and MIE HOLDINGS.
Diversification Opportunities for ASPEN TECHINC and MIE HOLDINGS
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ASPEN and MIE is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding ASPEN TECHINC DL and MIE HOLDINGS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MIE HOLDINGS and ASPEN TECHINC 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 ASPEN TECHINC DL are associated (or correlated) with MIE HOLDINGS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MIE HOLDINGS has no effect on the direction of ASPEN TECHINC i.e., ASPEN TECHINC and MIE HOLDINGS go up and down completely randomly.
Pair Corralation between ASPEN TECHINC and MIE HOLDINGS
If you would invest 24,000 in ASPEN TECHINC DL on November 3, 2024 and sell it today you would earn a total of 1,000.00 from holding ASPEN TECHINC DL or generate 4.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ASPEN TECHINC DL vs. MIE HOLDINGS
Performance |
| Timeline |
| ASPEN TECHINC DL |
| MIE HOLDINGS |
ASPEN TECHINC and MIE HOLDINGS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ASPEN TECHINC and MIE HOLDINGS
The main advantage of trading using opposite ASPEN TECHINC and MIE HOLDINGS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASPEN TECHINC position performs unexpectedly, MIE HOLDINGS 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 MIE HOLDINGS will offset losses from the drop in MIE HOLDINGS's long position.| ASPEN TECHINC vs. AWILCO DRILLING PLC | ASPEN TECHINC vs. Cars Inc | ASPEN TECHINC vs. CARSALESCOM | ASPEN TECHINC vs. Motorcar Parts of |
| MIE HOLDINGS vs. Harmony Gold Mining | MIE HOLDINGS vs. Yanzhou Coal Mining | MIE HOLDINGS vs. Air Transport Services | MIE HOLDINGS vs. GRIFFIN MINING LTD |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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