Correlation Between Crexendo and MKDWELL Tech
Can any of the company-specific risk be diversified away by investing in both Crexendo and MKDWELL Tech 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 Crexendo and MKDWELL Tech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Crexendo and MKDWELL Tech Ordinary, you can compare the effects of market volatilities on Crexendo and MKDWELL Tech 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 Crexendo with a short position of MKDWELL Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Crexendo and MKDWELL Tech.
Diversification Opportunities for Crexendo and MKDWELL Tech
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Crexendo and MKDWELL is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Crexendo and MKDWELL Tech Ordinary in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MKDWELL Tech Ordinary and Crexendo 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 Crexendo are associated (or correlated) with MKDWELL Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MKDWELL Tech Ordinary has no effect on the direction of Crexendo i.e., Crexendo and MKDWELL Tech go up and down completely randomly.
Pair Corralation between Crexendo and MKDWELL Tech
Given the investment horizon of 90 days Crexendo is expected to generate 0.38 times more return on investment than MKDWELL Tech. However, Crexendo is 2.65 times less risky than MKDWELL Tech. It trades about 0.06 of its potential returns per unit of risk. MKDWELL Tech Ordinary is currently generating about -0.1 per unit of risk. If you would invest 194.00 in Crexendo on August 27, 2024 and sell it today you would earn a total of 330.00 from holding Crexendo or generate 170.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 17.34% |
| Values | Daily Returns |
Crexendo vs. MKDWELL Tech Ordinary
Performance |
| Timeline |
| Crexendo |
| MKDWELL Tech Ordinary |
Crexendo and MKDWELL Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Crexendo and MKDWELL Tech
The main advantage of trading using opposite Crexendo and MKDWELL Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Crexendo position performs unexpectedly, MKDWELL Tech 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 MKDWELL Tech will offset losses from the drop in MKDWELL Tech's long position.| Crexendo vs. Tele2 AB | Crexendo vs. Liberty Broadband Srs | Crexendo vs. KT Corporation | Crexendo vs. Liberty Broadband Srs |
| MKDWELL Tech vs. NFT Limited | MKDWELL Tech vs. Enlivex Therapeutics | MKDWELL Tech vs. Wisekey International Holding | MKDWELL Tech vs. Sphere 3D Corp |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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