Correlation Between CommScope Holding and Minim

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

By analyzing existing cross correlation between CommScope Holding Co and Minim Inc, you can compare the effects of market volatilities on CommScope Holding and Minim 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 CommScope Holding with a short position of Minim. Check out your portfolio center. Please also check ongoing floating volatility patterns of CommScope Holding and Minim.

Diversification Opportunities for CommScope Holding and Minim

0.0

Correlation Coefficient

CommScope Holding  Minim

Pay attention - limited upside

The 3 months correlation between CommScope and Minim is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CommScope Holding Co and Minim Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Minim Inc and CommScope Holding 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 CommScope Holding Co are associated (or correlated) with Minim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Minim Inc has no effect on the direction of CommScope Holding i.e., CommScope Holding and Minim go up and down completely randomly.

Pair Corralation between CommScope Holding and Minim

Given the investment horizon of 90 days CommScope Holding is expected to generate 12.36 times less return on investment than Minim. But when comparing it to its historical volatility, CommScope Holding Co is 3.83 times less risky than Minim. It trades about 0.02 of its potential returns per unit of risk. Minim Inc is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  400.00  in Minim Inc on September 4, 2024 and sell it today you would lose (139.00) from holding Minim Inc or give up 34.75% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	81.62%
Values	Daily Returns

CommScope Holding Co  vs.  Minim Inc

CommScope Holding

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in CommScope Holding Co are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of very inconsistent primary indicators, CommScope Holding displayed solid returns over the last few months and may actually be approaching a breakup point.

Minim Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Minim Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Minim is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with CommScope Holding and Minim

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

The idea behind CommScope Holding Co and Minim Inc 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.