Correlation Between MIC Electronics and Dev Information

Can any of the company-specific risk be diversified away by investing in both MIC Electronics and Dev Information 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 MIC Electronics and Dev Information into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between MIC Electronics Limited and Dev Information Technology, you can compare the effects of market volatilities on MIC Electronics and Dev Information 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 MIC Electronics with a short position of Dev Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of MIC Electronics and Dev Information.

Diversification Opportunities for MIC Electronics and Dev Information

-0.25

Correlation Coefficient

MIC Electronics  Dev Information

Very good diversification

The 3 months correlation between MIC and Dev is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding MIC Electronics Limited and Dev Information Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dev Information Tech and MIC 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 MIC Electronics Limited are associated (or correlated) with Dev Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dev Information Tech has no effect on the direction of MIC Electronics i.e., MIC Electronics and Dev Information go up and down completely randomly.

Pair Corralation between MIC Electronics and Dev Information

Assuming the 90 days trading horizon MIC Electronics Limited is expected to under-perform the Dev Information. In addition to that, MIC Electronics is 1.2 times more volatile than Dev Information Technology. It trades about -0.05 of its total potential returns per unit of risk. Dev Information Technology is currently generating about 0.04 per unit of volatility. If you would invest  11,389  in Dev Information Technology on April 24, 2025 and sell it today you would earn a total of  524.00  from holding Dev Information Technology or generate 4.6% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

MIC Electronics Limited  vs.  Dev Information Technology

MIC Electronics

Risk-Adjusted Performance

Very Weak

Over the last 90 days MIC Electronics Limited has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's fundamental indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Dev Information Tech

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Dev Information Technology are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain basic indicators, Dev Information may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with MIC Electronics and Dev Information

The main advantage of trading using opposite MIC Electronics and Dev Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MIC Electronics position performs unexpectedly, Dev Information 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 Dev Information will offset losses from the drop in Dev Information's long position.

The idea behind MIC Electronics Limited and Dev Information Technology 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.