Correlation Between 4Dmedical and MA Financial
Can any of the company-specific risk be diversified away by investing in both 4Dmedical and MA Financial 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 4Dmedical and MA Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 4Dmedical and MA Financial Group, you can compare the effects of market volatilities on 4Dmedical and MA Financial 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 4Dmedical with a short position of MA Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of 4Dmedical and MA Financial.
Diversification Opportunities for 4Dmedical and MA Financial
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between 4Dmedical and MAF is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding 4Dmedical and MA Financial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MA Financial Group and 4Dmedical 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 4Dmedical are associated (or correlated) with MA Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MA Financial Group has no effect on the direction of 4Dmedical i.e., 4Dmedical and MA Financial go up and down completely randomly.
Pair Corralation between 4Dmedical and MA Financial
Assuming the 90 days trading horizon 4Dmedical is expected to generate 3.11 times more return on investment than MA Financial. However, 4Dmedical is 3.11 times more volatile than MA Financial Group. It trades about 0.07 of its potential returns per unit of risk. MA Financial Group is currently generating about 0.11 per unit of risk. If you would invest 46.00 in 4Dmedical on October 24, 2024 and sell it today you would earn a total of 11.00 from holding 4Dmedical or generate 23.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
4Dmedical vs. MA Financial Group
Performance |
| Timeline |
| 4Dmedical |
| MA Financial Group |
4Dmedical and MA Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 4Dmedical and MA Financial
The main advantage of trading using opposite 4Dmedical and MA Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 4Dmedical position performs unexpectedly, MA Financial 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 MA Financial will offset losses from the drop in MA Financial's long position.| 4Dmedical vs. Energy Resources | 4Dmedical vs. 88 Energy | 4Dmedical vs. A1 Investments Resources | 4Dmedical vs. Coronado Global Resources |
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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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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