Correlation Between MAVEN WIRELESS and Nine Dragons
Can any of the company-specific risk be diversified away by investing in both MAVEN WIRELESS and Nine Dragons 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 MAVEN WIRELESS and Nine Dragons into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MAVEN WIRELESS SWEDEN and Nine Dragons Paper, you can compare the effects of market volatilities on MAVEN WIRELESS and Nine Dragons 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 MAVEN WIRELESS with a short position of Nine Dragons. Check out your portfolio center. Please also check ongoing floating volatility patterns of MAVEN WIRELESS and Nine Dragons.
Diversification Opportunities for MAVEN WIRELESS and Nine Dragons
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MAVEN and Nine is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding MAVEN WIRELESS SWEDEN and Nine Dragons Paper in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nine Dragons Paper and MAVEN WIRELESS 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 MAVEN WIRELESS SWEDEN are associated (or correlated) with Nine Dragons. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nine Dragons Paper has no effect on the direction of MAVEN WIRELESS i.e., MAVEN WIRELESS and Nine Dragons go up and down completely randomly.
Pair Corralation between MAVEN WIRELESS and Nine Dragons
Assuming the 90 days horizon MAVEN WIRELESS SWEDEN is expected to under-perform the Nine Dragons. But the stock apears to be less risky and, when comparing its historical volatility, MAVEN WIRELESS SWEDEN is 1.58 times less risky than Nine Dragons. The stock trades about -0.02 of its potential returns per unit of risk. The Nine Dragons Paper is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 71.00 in Nine Dragons Paper on August 26, 2024 and sell it today you would lose (33.00) from holding Nine Dragons Paper or give up 46.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MAVEN WIRELESS SWEDEN vs. Nine Dragons Paper
Performance |
| Timeline |
| MAVEN WIRELESS SWEDEN |
| Nine Dragons Paper |
MAVEN WIRELESS and Nine Dragons Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MAVEN WIRELESS and Nine Dragons
The main advantage of trading using opposite MAVEN WIRELESS and Nine Dragons positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MAVEN WIRELESS position performs unexpectedly, Nine Dragons 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 Nine Dragons will offset losses from the drop in Nine Dragons' long position.| MAVEN WIRELESS vs. T Mobile | MAVEN WIRELESS vs. ATT Inc | MAVEN WIRELESS vs. Deutsche Telekom AG | MAVEN WIRELESS vs. Nippon Telegraph and |
| Nine Dragons vs. CENTURIA OFFICE REIT | Nine Dragons vs. Platinum Investment Management | Nine Dragons vs. Cleanaway Waste Management | Nine Dragons vs. MAVEN WIRELESS SWEDEN |
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 Stocks Directory module to find actively traded stocks across global markets.
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