Correlation Between Ambertech and MFF Capital
Can any of the company-specific risk be diversified away by investing in both Ambertech and MFF Capital 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 Ambertech and MFF Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ambertech and MFF Capital Investments, you can compare the effects of market volatilities on Ambertech and MFF Capital 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 Ambertech with a short position of MFF Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ambertech and MFF Capital.
Diversification Opportunities for Ambertech and MFF Capital
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ambertech and MFF is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Ambertech and MFF Capital Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MFF Capital Investments and Ambertech 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 Ambertech are associated (or correlated) with MFF Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MFF Capital Investments has no effect on the direction of Ambertech i.e., Ambertech and MFF Capital go up and down completely randomly.
Pair Corralation between Ambertech and MFF Capital
Assuming the 90 days trading horizon Ambertech is expected to under-perform the MFF Capital. In addition to that, Ambertech is 3.85 times more volatile than MFF Capital Investments. It trades about -0.02 of its total potential returns per unit of risk. MFF Capital Investments is currently generating about 0.15 per unit of volatility. If you would invest 223.00 in MFF Capital Investments on October 11, 2024 and sell it today you would earn a total of 243.00 from holding MFF Capital Investments or generate 108.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ambertech vs. MFF Capital Investments
Performance |
| Timeline |
| Ambertech |
| MFF Capital Investments |
Ambertech and MFF Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ambertech and MFF Capital
The main advantage of trading using opposite Ambertech and MFF Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ambertech position performs unexpectedly, MFF Capital 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 MFF Capital will offset losses from the drop in MFF Capital's long position.| Ambertech vs. Macquarie Technology Group | Ambertech vs. Richmond Vanadium Technology | Ambertech vs. WiseTech Global Limited | Ambertech vs. Zoom2u Technologies |
| MFF Capital vs. Aspire Mining | MFF Capital vs. National Storage REIT | MFF Capital vs. Perseus Mining | MFF Capital vs. My Foodie Box |
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.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |