Correlation Between Meiko Electronics and TRIPCOM GROUP
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 Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Meiko Electronics Co vs. TRIPCOM GROUP DL 00125
Performance |
Timeline |
Meiko Electronics |
TRIPCOM GROUP DL |
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.Meiko Electronics vs. Transport International Holdings | Meiko Electronics vs. American Public Education | Meiko Electronics vs. Xinhua Winshare Publishing | Meiko Electronics vs. FIREWEED METALS P |
TRIPCOM GROUP vs. Sumitomo Mitsui Construction | TRIPCOM GROUP vs. Agricultural Bank of | TRIPCOM GROUP vs. DAIRY FARM INTL | TRIPCOM GROUP vs. AIR PRODCHEMICALS |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
Equity Valuation Check real value of public entities based on technical and fundamental data | |
Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
Transaction History View history of all your transactions and understand their impact on performance | |
Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |