Correlation Between SPASX Dividend and MA Financial
Can any of the company-specific risk be diversified away by investing in both SPASX Dividend 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 SPASX Dividend and MA Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPASX Dividend Opportunities and MA Financial Group, you can compare the effects of market volatilities on SPASX Dividend 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 SPASX Dividend with a short position of MA Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPASX Dividend and MA Financial.
Diversification Opportunities for SPASX Dividend and MA Financial
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between SPASX and MAF is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding SPASX Dividend Opportunities 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 SPASX Dividend 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 SPASX Dividend Opportunities 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 SPASX Dividend i.e., SPASX Dividend and MA Financial go up and down completely randomly.
Pair Corralation between SPASX Dividend and MA Financial
Assuming the 90 days trading horizon SPASX Dividend is expected to generate 1.5 times less return on investment than MA Financial. But when comparing it to its historical volatility, SPASX Dividend Opportunities is 3.04 times less risky than MA Financial. It trades about 0.05 of its potential returns per unit of risk. MA Financial Group is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 641.00 in MA Financial Group on August 28, 2024 and sell it today you would earn a total of 4.00 from holding MA Financial Group or generate 0.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPASX Dividend Opportunities vs. MA Financial Group
Performance |
| Timeline |
SPASX Dividend and MA Financial Volatility Contrast
Predicted Return Density |
| Returns |
SPASX Dividend Opportunities
Pair trading matchups for SPASX Dividend
MA Financial Group
Pair trading matchups for MA Financial
Pair Trading with SPASX Dividend and MA Financial
The main advantage of trading using opposite SPASX Dividend and MA Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPASX Dividend 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.| SPASX Dividend vs. Red Hill Iron | SPASX Dividend vs. Ainsworth Game Technology | SPASX Dividend vs. Champion Iron | SPASX Dividend vs. Autosports Group |
| MA Financial vs. Renascor Resources | MA Financial vs. Venus Metals | MA Financial vs. Havilah Resources | MA Financial vs. Asara Resources |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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