Correlation Between MidCap Financial and CHINA TONTINE
Can any of the company-specific risk be diversified away by investing in both MidCap Financial and CHINA TONTINE 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 MidCap Financial and CHINA TONTINE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MidCap Financial Investment and CHINA TONTINE WINES, you can compare the effects of market volatilities on MidCap Financial and CHINA TONTINE 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 MidCap Financial with a short position of CHINA TONTINE. Check out your portfolio center. Please also check ongoing floating volatility patterns of MidCap Financial and CHINA TONTINE.
Diversification Opportunities for MidCap Financial and CHINA TONTINE
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MidCap and CHINA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding MidCap Financial Investment and CHINA TONTINE WINES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHINA TONTINE WINES and MidCap Financial 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 MidCap Financial Investment are associated (or correlated) with CHINA TONTINE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CHINA TONTINE WINES has no effect on the direction of MidCap Financial i.e., MidCap Financial and CHINA TONTINE go up and down completely randomly.
Pair Corralation between MidCap Financial and CHINA TONTINE
If you would invest 1,295 in MidCap Financial Investment on October 30, 2024 and sell it today you would earn a total of 19.00 from holding MidCap Financial Investment or generate 1.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MidCap Financial Investment vs. CHINA TONTINE WINES
Performance |
| Timeline |
| MidCap Financial Inv |
| CHINA TONTINE WINES |
MidCap Financial and CHINA TONTINE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MidCap Financial and CHINA TONTINE
The main advantage of trading using opposite MidCap Financial and CHINA TONTINE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MidCap Financial position performs unexpectedly, CHINA TONTINE 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 CHINA TONTINE will offset losses from the drop in CHINA TONTINE's long position.| MidCap Financial vs. KENEDIX OFFICE INV | MidCap Financial vs. 24SEVENOFFICE GROUP AB | MidCap Financial vs. SILICON LABORATOR | MidCap Financial vs. CHEMICAL INDUSTRIES |
| CHINA TONTINE vs. Cognizant Technology Solutions | CHINA TONTINE vs. Haverty Furniture Companies | CHINA TONTINE vs. The Home Depot | CHINA TONTINE vs. KENEDIX OFFICE INV |
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 CEOs Directory module to screen CEOs from public companies around the world.
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