Correlation Between Zinwell and Min Aik

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

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

Diversification Opportunities for Zinwell and Min Aik

0.8

Correlation Coefficient

Zinwell  Min Aik

Very poor diversification

The 3 months correlation between Zinwell and Min is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Zinwell and Min Aik Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Min Aik Technology and Zinwell 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 Zinwell are associated (or correlated) with Min Aik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Min Aik Technology has no effect on the direction of Zinwell i.e., Zinwell and Min Aik go up and down completely randomly.

Pair Corralation between Zinwell and Min Aik

Assuming the 90 days trading horizon Zinwell is expected to generate 36.87 times less return on investment than Min Aik. But when comparing it to its historical volatility, Zinwell is 1.24 times less risky than Min Aik. It trades about 0.0 of its potential returns per unit of risk. Min Aik Technology is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  1,592  in Min Aik Technology on September 24, 2024 and sell it today you would earn a total of  798.00  from holding Min Aik Technology or generate 50.13% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	99.79%
Values	Daily Returns

Zinwell  vs.  Min Aik Technology

Zinwell

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Zinwell has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest abnormal performance, the Stock's basic indicators remain stable and the latest fuss on Wall Street may also be a sign of long-term gains for the venture sophisticated investors.

Min Aik Technology

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Min Aik Technology has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest abnormal performance, the Stock's basic indicators remain stable and the latest fuss on Wall Street may also be a sign of long-term gains for the venture sophisticated investors.

Pair Trading with Zinwell and Min Aik

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

The idea behind Zinwell and Min Aik 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.

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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.