Correlation Between Currency Exchange and Maxim Power
Can any of the company-specific risk be diversified away by investing in both Currency Exchange and Maxim Power 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 Currency Exchange and Maxim Power into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Currency Exchange International and Maxim Power Corp, you can compare the effects of market volatilities on Currency Exchange and Maxim Power 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 Currency Exchange with a short position of Maxim Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Currency Exchange and Maxim Power.
Diversification Opportunities for Currency Exchange and Maxim Power
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Currency and Maxim is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Currency Exchange Internationa and Maxim Power Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maxim Power Corp and Currency Exchange 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 Currency Exchange International are associated (or correlated) with Maxim Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maxim Power Corp has no effect on the direction of Currency Exchange i.e., Currency Exchange and Maxim Power go up and down completely randomly.
Pair Corralation between Currency Exchange and Maxim Power
Assuming the 90 days trading horizon Currency Exchange International is expected to under-perform the Maxim Power. But the stock apears to be less risky and, when comparing its historical volatility, Currency Exchange International is 2.85 times less risky than Maxim Power. The stock trades about -0.06 of its potential returns per unit of risk. The Maxim Power Corp is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest 512.00 in Maxim Power Corp on October 23, 2024 and sell it today you would earn a total of 98.00 from holding Maxim Power Corp or generate 19.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Currency Exchange Internationa vs. Maxim Power Corp
Performance |
| Timeline |
| Currency Exchange |
| Maxim Power Corp |
Currency Exchange and Maxim Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Currency Exchange and Maxim Power
The main advantage of trading using opposite Currency Exchange and Maxim Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Currency Exchange position performs unexpectedly, Maxim Power 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 Maxim Power will offset losses from the drop in Maxim Power's long position.| Currency Exchange vs. Caldwell Partners International | Currency Exchange vs. Firan Technology Group | Currency Exchange vs. K Bro Linen | Currency Exchange vs. Exco Technologies Limited |
| Maxim Power vs. Caldwell Partners International | Maxim Power vs. Mccoy Global | Maxim Power vs. Pulse Seismic | Maxim Power vs. Currency Exchange International |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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