Correlation Between Mind Technology and Energous

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

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

Diversification Opportunities for Mind Technology and Energous

-0.75

Correlation Coefficient

Mind Technology  Energous

Pay attention - limited upside

The 3 months correlation between Mind and Energous is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Mind Technology and Energous in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Energous 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 Energous. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Energous has no effect on the direction of Mind Technology i.e., Mind Technology and Energous go up and down completely randomly.

Pair Corralation between Mind Technology and Energous

Given the investment horizon of 90 days Mind Technology is expected to generate 1.36 times more return on investment than Energous. However, Mind Technology is 1.36 times more volatile than Energous. It trades about 0.01 of its potential returns per unit of risk. Energous is currently generating about -0.13 per unit of risk. If you would invest  4,600  in Mind Technology on September 20, 2024 and sell it today you would lose (3,857) from holding Mind Technology or give up 83.85% of portfolio value over 90 days.

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

Mind Technology  vs.  Energous

Mind Technology

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Mind Technology are ranked lower than 14 (%) 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.

Energous

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Energous has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Mind Technology and Energous

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

The idea behind Mind Technology and Energous 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.