Correlation Between Cardano and MFA Financial
Can any of the company-specific risk be diversified away by investing in both Cardano and MFA 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 Cardano and MFA Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cardano and MFA Financial SR, you can compare the effects of market volatilities on Cardano and MFA 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 Cardano with a short position of MFA Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cardano and MFA Financial.
Diversification Opportunities for Cardano and MFA Financial
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cardano and MFA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Cardano and MFA Financial SR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MFA Financial SR and Cardano 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 Cardano are associated (or correlated) with MFA Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MFA Financial SR has no effect on the direction of Cardano i.e., Cardano and MFA Financial go up and down completely randomly.
Pair Corralation between Cardano and MFA Financial
If you would invest 32.00 in Cardano on November 2, 2024 and sell it today you would earn a total of 64.00 from holding Cardano or generate 200.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Cardano vs. MFA Financial SR
Performance |
| Timeline |
| Cardano |
| MFA Financial SR |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Cardano and MFA Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cardano and MFA Financial
The main advantage of trading using opposite Cardano and MFA Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cardano position performs unexpectedly, MFA 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 MFA Financial will offset losses from the drop in MFA Financial's long position.The idea behind Cardano and MFA Financial SR 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.| MFA Financial vs. TFI International | MFA Financial vs. Vestis | MFA Financial vs. MPLX LP | MFA Financial vs. Mesa Air Group |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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