Correlation Between Micro Imaging and FACT II

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

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

Diversification Opportunities for Micro Imaging and FACT II

0.0

Correlation Coefficient

Micro Imaging  FACT II

Pay attention - limited upside

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

Pair Corralation between Micro Imaging and FACT II

If you would invest  1,022  in FACT II Acquisition on May 2, 2025 and sell it today you would earn a total of  7.00  from holding FACT II Acquisition or generate 0.68% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

Micro Imaging Technology  vs.  FACT II Acquisition

Micro Imaging Technology

Risk-Adjusted Performance

Very Weak

Over the last 90 days Micro Imaging Technology has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Micro Imaging is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

FACT II Acquisition

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in FACT II Acquisition are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable fundamental indicators, FACT II is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Micro Imaging and FACT II

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

The idea behind Micro Imaging Technology and FACT II Acquisition 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.