Correlation Between A1 Investments and MA Financial
Can any of the company-specific risk be diversified away by investing in both A1 Investments 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 A1 Investments and MA Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between A1 Investments Resources and MA Financial Group, you can compare the effects of market volatilities on A1 Investments 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 A1 Investments with a short position of MA Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of A1 Investments and MA Financial.
Diversification Opportunities for A1 Investments and MA Financial
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AYI and MAF is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding A1 Investments Resources 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 A1 Investments 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 A1 Investments Resources 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 A1 Investments i.e., A1 Investments and MA Financial go up and down completely randomly.
Pair Corralation between A1 Investments and MA Financial
Assuming the 90 days trading horizon A1 Investments is expected to generate 1.06 times less return on investment than MA Financial. In addition to that, A1 Investments is 2.04 times more volatile than MA Financial Group. It trades about 0.02 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 426.00 in MA Financial Group on September 2, 2024 and sell it today you would earn a total of 195.00 from holding MA Financial Group or generate 45.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
A1 Investments Resources vs. MA Financial Group
Performance |
| Timeline |
| A1 Investments Resources |
| MA Financial Group |
A1 Investments and MA Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with A1 Investments and MA Financial
The main advantage of trading using opposite A1 Investments and MA Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if A1 Investments 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.| A1 Investments vs. WA1 Resources | A1 Investments vs. Predictive Discovery | A1 Investments vs. Cooper Metals | A1 Investments vs. OD6 Metals |
| MA Financial vs. Inventis | MA Financial vs. Pengana Private Equity | MA Financial vs. PM Capital Global | MA Financial vs. Macquarie Group Ltd |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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