Correlation Between Meiko Electronics and TRIPCOM GROUP

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Can any of the company-specific risk be diversified away by investing in both Meiko Electronics and TRIPCOM GROUP 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 Meiko Electronics and TRIPCOM GROUP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Meiko Electronics Co and TRIPCOM GROUP DL 00125, you can compare the effects of market volatilities on Meiko Electronics and TRIPCOM GROUP 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 Meiko Electronics with a short position of TRIPCOM GROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meiko Electronics and TRIPCOM GROUP.

Diversification Opportunities for Meiko Electronics and TRIPCOM GROUP

-0.08
  Correlation Coefficient

Good diversification

The 3 months correlation between Meiko and TRIPCOM is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Meiko Electronics Co and TRIPCOM GROUP DL 00125 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TRIPCOM GROUP DL and Meiko Electronics 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 Meiko Electronics Co are associated (or correlated) with TRIPCOM GROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TRIPCOM GROUP DL has no effect on the direction of Meiko Electronics i.e., Meiko Electronics and TRIPCOM GROUP go up and down completely randomly.

Pair Corralation between Meiko Electronics and TRIPCOM GROUP

Assuming the 90 days horizon Meiko Electronics Co is expected to generate 0.88 times more return on investment than TRIPCOM GROUP. However, Meiko Electronics Co is 1.14 times less risky than TRIPCOM GROUP. It trades about 0.08 of its potential returns per unit of risk. TRIPCOM GROUP DL 00125 is currently generating about 0.06 per unit of risk. If you would invest  3,500  in Meiko Electronics Co on April 21, 2025 and sell it today you would earn a total of  420.00  from holding Meiko Electronics Co or generate 12.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Meiko Electronics Co  vs.  TRIPCOM GROUP DL 00125

 Performance 
       Timeline  
Meiko Electronics 

Risk-Adjusted Performance

Modest

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Meiko Electronics Co are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Meiko Electronics reported solid returns over the last few months and may actually be approaching a breakup point.
TRIPCOM GROUP DL 

Risk-Adjusted Performance

Insignificant

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in TRIPCOM GROUP DL 00125 are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, TRIPCOM GROUP may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Meiko Electronics and TRIPCOM GROUP Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Meiko Electronics and TRIPCOM GROUP

The main advantage of trading using opposite Meiko Electronics and TRIPCOM GROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meiko Electronics position performs unexpectedly, TRIPCOM GROUP 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 TRIPCOM GROUP will offset losses from the drop in TRIPCOM GROUP's long position.
The idea behind Meiko Electronics Co and TRIPCOM GROUP DL 00125 pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.

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