Correlation Between Aumake and MA Financial
Can any of the company-specific risk be diversified away by investing in both Aumake 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 Aumake and MA Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aumake and MA Financial Group, you can compare the effects of market volatilities on Aumake 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 Aumake with a short position of MA Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aumake and MA Financial.
Diversification Opportunities for Aumake and MA Financial
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Aumake and MAF is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Aumake 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 Aumake 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 Aumake 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 Aumake i.e., Aumake and MA Financial go up and down completely randomly.
Pair Corralation between Aumake and MA Financial
Assuming the 90 days trading horizon Aumake is expected to generate 5.78 times more return on investment than MA Financial. However, Aumake is 5.78 times more volatile than MA Financial Group. It trades about 0.07 of its potential returns per unit of risk. MA Financial Group is currently generating about 0.03 per unit of risk. If you would invest 0.50 in Aumake on September 12, 2024 and sell it today you would earn a total of 0.10 from holding Aumake or generate 20.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aumake vs. MA Financial Group
Performance |
| Timeline |
| Aumake |
| MA Financial Group |
Aumake and MA Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aumake and MA Financial
The main advantage of trading using opposite Aumake and MA Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aumake 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.| Aumake vs. COAST ENTERTAINMENT HOLDINGS | Aumake vs. MFF Capital Investments | Aumake vs. EROAD | Aumake vs. Skycity Entertainment Group |
| MA Financial vs. Australian Agricultural | MA Financial vs. EMvision Medical Devices | MA Financial vs. Genetic Technologies | MA Financial vs. WiseTech Global Limited |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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