Correlation Between Empresa Distribuidora and MFA Financial
Can any of the company-specific risk be diversified away by investing in both Empresa Distribuidora and MFA 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 Empresa Distribuidora and MFA Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Empresa Distribuidora y and MFA Financial SR, you can compare the effects of market volatilities on Empresa Distribuidora and MFA 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 Empresa Distribuidora with a short position of MFA Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Empresa Distribuidora and MFA Financial.
Diversification Opportunities for Empresa Distribuidora and MFA Financial
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Empresa and MFA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Empresa Distribuidora y and MFA Financial SR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MFA Financial SR and Empresa Distribuidora 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 Empresa Distribuidora y are associated (or correlated) with MFA Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MFA Financial SR has no effect on the direction of Empresa Distribuidora i.e., Empresa Distribuidora and MFA Financial go up and down completely randomly.
Pair Corralation between Empresa Distribuidora and MFA Financial
If you would invest 3,677 in Empresa Distribuidora y on September 20, 2024 and sell it today you would earn a total of 649.00 from holding Empresa Distribuidora y or generate 17.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Empresa Distribuidora y vs. MFA Financial SR
Performance |
| Timeline |
| Empresa Distribuidora |
| MFA Financial SR |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Empresa Distribuidora and MFA Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Empresa Distribuidora and MFA Financial
The main advantage of trading using opposite Empresa Distribuidora and MFA Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Empresa Distribuidora position performs unexpectedly, MFA 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 MFA Financial will offset losses from the drop in MFA Financial's long position.| Empresa Distribuidora vs. Centrais Eltricas Brasileiras | Empresa Distribuidora vs. CMS Energy | Empresa Distribuidora vs. Centrais Electricas Brasileiras | Empresa Distribuidora vs. Genie Energy |
| MFA Financial vs. Lindblad Expeditions Holdings | MFA Financial vs. Weibo Corp | MFA Financial vs. Apogee Enterprises | MFA Financial vs. Zhihu Inc ADR |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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