Correlation Between Encore Capital and MQGAU

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Encore Capital and MQGAU 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 Encore Capital and MQGAU into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Encore Capital Group and MQGAU 5376057 23 SEP 27, you can compare the effects of market volatilities on Encore Capital and MQGAU 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 Encore Capital with a short position of MQGAU. Check out your portfolio center. Please also check ongoing floating volatility patterns of Encore Capital and MQGAU.

Diversification Opportunities for Encore Capital and MQGAU

0.09
  Correlation Coefficient

Significant diversification

The 3 months correlation between Encore and MQGAU is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Encore Capital Group and MQGAU 5376057 23 SEP 27 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MQGAU 5376057 23 and Encore Capital 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 Encore Capital Group are associated (or correlated) with MQGAU. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MQGAU 5376057 23 has no effect on the direction of Encore Capital i.e., Encore Capital and MQGAU go up and down completely randomly.

Pair Corralation between Encore Capital and MQGAU

Given the investment horizon of 90 days Encore Capital Group is expected to generate 21.65 times more return on investment than MQGAU. However, Encore Capital is 21.65 times more volatile than MQGAU 5376057 23 SEP 27. It trades about 0.02 of its potential returns per unit of risk. MQGAU 5376057 23 SEP 27 is currently generating about -0.02 per unit of risk. If you would invest  4,892  in Encore Capital Group on September 14, 2024 and sell it today you would earn a total of  14.00  from holding Encore Capital Group or generate 0.29% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy33.33%
ValuesDaily Returns

Encore Capital Group  vs.  MQGAU 5376057 23 SEP 27

 Performance 
       Timeline  
Encore Capital Group 

Risk-Adjusted Performance

2 of 100

 
Weak
 
Strong
Weak
Compared to the overall equity markets, risk-adjusted returns on investments in Encore Capital Group are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Encore Capital is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.
MQGAU 5376057 23 

Risk-Adjusted Performance

10 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in MQGAU 5376057 23 SEP 27 are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, MQGAU is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Encore Capital and MQGAU Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Encore Capital and MQGAU

The main advantage of trading using opposite Encore Capital and MQGAU positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Encore Capital position performs unexpectedly, MQGAU 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 MQGAU will offset losses from the drop in MQGAU's long position.
Encore Capital vs. Visa Class A
Encore Capital vs. PayPal Holdings
Encore Capital vs. Upstart Holdings
Encore Capital vs. Mastercard
The idea behind Encore Capital Group and MQGAU 5376057 23 SEP 27 pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
MQGAU vs. AEP TEX INC
MQGAU vs. US BANK NATIONAL
MQGAU vs. Alphabet Inc Class C
MQGAU vs. InMode
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.

Other Complementary Tools

Bond Analysis
Evaluate and analyze corporate bonds as a potential investment for your portfolios.
Content Syndication
Quickly integrate customizable finance content to your own investment portal
Aroon Oscillator
Analyze current equity momentum using Aroon Oscillator and other momentum ratios
Positions Ratings
Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance
Commodity Channel
Use Commodity Channel Index to analyze current equity momentum


 
Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions
 
Feedback Blog
Made with optimal in San Francisco
2024 Macroaxis LLC
COMMON DESTINATIONS
MAIN CATEGORIES
COMPANY