Correlation Between Afya and Marti Technologies
Can any of the company-specific risk be diversified away by investing in both Afya and Marti Technologies 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 Afya and Marti Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Afya and Marti Technologies, you can compare the effects of market volatilities on Afya and Marti Technologies 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 Afya with a short position of Marti Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Afya and Marti Technologies.
Diversification Opportunities for Afya and Marti Technologies
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Afya and Marti is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Afya and Marti Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marti Technologies and Afya 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 Afya are associated (or correlated) with Marti Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marti Technologies has no effect on the direction of Afya i.e., Afya and Marti Technologies go up and down completely randomly.
Pair Corralation between Afya and Marti Technologies
Given the investment horizon of 90 days Afya is expected to under-perform the Marti Technologies. But the stock apears to be less risky and, when comparing its historical volatility, Afya is 3.83 times less risky than Marti Technologies. The stock trades about -0.11 of its potential returns per unit of risk. The Marti Technologies is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 210.00 in Marti Technologies on September 2, 2024 and sell it today you would earn a total of 132.00 from holding Marti Technologies or generate 62.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Afya vs. Marti Technologies
Performance |
| Timeline |
| Afya |
| Marti Technologies |
Afya and Marti Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Afya and Marti Technologies
The main advantage of trading using opposite Afya and Marti Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Afya position performs unexpectedly, Marti Technologies 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 Marti Technologies will offset losses from the drop in Marti Technologies' long position.| Afya vs. American Public Education | Afya vs. ATA Creativity Global | Afya vs. Cogna Educacao SA | Afya vs. Adtalem Global Education |
| Marti Technologies vs. Keurig Dr Pepper | Marti Technologies vs. Ambev SA ADR | Marti Technologies vs. Molson Coors Brewing | Marti Technologies vs. PennantPark Floating Rate |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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