Correlation Between Apiam Animal and MA Financial
Can any of the company-specific risk be diversified away by investing in both Apiam Animal 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 Apiam Animal and MA Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apiam Animal Health and MA Financial Group, you can compare the effects of market volatilities on Apiam Animal 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 Apiam Animal with a short position of MA Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apiam Animal and MA Financial.
Diversification Opportunities for Apiam Animal and MA Financial
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Apiam and MAF is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Apiam Animal Health 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 Apiam Animal 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 Apiam Animal Health 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 Apiam Animal i.e., Apiam Animal and MA Financial go up and down completely randomly.
Pair Corralation between Apiam Animal and MA Financial
Assuming the 90 days trading horizon Apiam Animal Health is expected to under-perform the MA Financial. In addition to that, Apiam Animal is 1.61 times more volatile than MA Financial Group. It trades about 0.0 of its total potential returns per unit of risk. MA Financial Group is currently generating about 0.04 per unit of volatility. If you would invest 418.00 in MA Financial Group on September 3, 2024 and sell it today you would earn a total of 203.00 from holding MA Financial Group or generate 48.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apiam Animal Health vs. MA Financial Group
Performance |
| Timeline |
| Apiam Animal Health |
| MA Financial Group |
Apiam Animal and MA Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apiam Animal and MA Financial
The main advantage of trading using opposite Apiam Animal and MA Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apiam Animal 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.| Apiam Animal vs. Pioneer Credit | Apiam Animal vs. Magellan Financial Group | Apiam Animal vs. Commonwealth Bank of | Apiam Animal vs. Wt Financial Group |
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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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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