Correlation Between Mind Technology and Track

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

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

Diversification Opportunities for Mind Technology and Track

-0.13

Correlation Coefficient

Mind Technology  Track

Good diversification

The 3 months correlation between Mind and Track is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Mind Technology and Track Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Track Group and Mind Technology 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 Mind Technology are associated (or correlated) with Track. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Track Group has no effect on the direction of Mind Technology i.e., Mind Technology and Track go up and down completely randomly.

Pair Corralation between Mind Technology and Track

Given the investment horizon of 90 days Mind Technology is expected to generate 0.46 times more return on investment than Track. However, Mind Technology is 2.18 times less risky than Track. It trades about 0.14 of its potential returns per unit of risk. Track Group is currently generating about 0.0 per unit of risk. If you would invest  392.00  in Mind Technology on September 13, 2024 and sell it today you would earn a total of  201.00  from holding Mind Technology or generate 51.28% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Mind Technology  vs.  Track Group

Mind Technology

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Mind Technology are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile basic indicators, Mind Technology exhibited solid returns over the last few months and may actually be approaching a breakup point.

Track Group

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Track Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent fundamental indicators, Track is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Mind Technology and Track

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

The idea behind Mind Technology and Track Group 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 CEOs Directory module to screen CEOs from public companies around the world.