Correlation Between Auction Technology and MT Bank
Can any of the company-specific risk be diversified away by investing in both Auction Technology and MT Bank 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 Auction Technology and MT Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Auction Technology Group and MT Bank Corp, you can compare the effects of market volatilities on Auction Technology and MT Bank 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 Auction Technology with a short position of MT Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Auction Technology and MT Bank.
Diversification Opportunities for Auction Technology and MT Bank
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Auction and 0JW2 is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Auction Technology Group and MT Bank Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MT Bank Corp and Auction Technology 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 Auction Technology Group are associated (or correlated) with MT Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MT Bank Corp has no effect on the direction of Auction Technology i.e., Auction Technology and MT Bank go up and down completely randomly.
Pair Corralation between Auction Technology and MT Bank
Assuming the 90 days trading horizon Auction Technology is expected to generate 9.6 times less return on investment than MT Bank. In addition to that, Auction Technology is 1.4 times more volatile than MT Bank Corp. It trades about 0.0 of its total potential returns per unit of risk. MT Bank Corp is currently generating about 0.05 per unit of volatility. If you would invest 13,407 in MT Bank Corp on November 27, 2024 and sell it today you would earn a total of 6,006 from holding MT Bank Corp or generate 44.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.39% |
| Values | Daily Returns |
Auction Technology Group vs. MT Bank Corp
Performance |
| Timeline |
| Auction Technology |
| MT Bank Corp |
Auction Technology and MT Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Auction Technology and MT Bank
The main advantage of trading using opposite Auction Technology and MT Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Auction Technology position performs unexpectedly, MT Bank 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 MT Bank will offset losses from the drop in MT Bank's long position.| Auction Technology vs. Dalata Hotel Group | Auction Technology vs. Infineon Technologies AG | Auction Technology vs. Kinnevik Investment AB | Auction Technology vs. Technicolor |
| MT Bank vs. Austevoll Seafood ASA | MT Bank vs. Symphony Environmental Technologies | MT Bank vs. Monster Beverage Corp | MT Bank vs. Hilton Food 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |