Correlation Between EZCORP and Moneygram Int
Can any of the company-specific risk be diversified away by investing in both EZCORP and Moneygram Int 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 EZCORP and Moneygram Int into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EZCORP Inc and Moneygram Int, you can compare the effects of market volatilities on EZCORP and Moneygram Int 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 EZCORP with a short position of Moneygram Int. Check out your portfolio center. Please also check ongoing floating volatility patterns of EZCORP and Moneygram Int.
Diversification Opportunities for EZCORP and Moneygram Int
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between EZCORP and Moneygram is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding EZCORP Inc and Moneygram Int in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Moneygram Int and EZCORP 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 EZCORP Inc are associated (or correlated) with Moneygram Int. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Moneygram Int has no effect on the direction of EZCORP i.e., EZCORP and Moneygram Int go up and down completely randomly.
Pair Corralation between EZCORP and Moneygram Int
If you would invest 879.00 in EZCORP Inc on August 31, 2024 and sell it today you would earn a total of 401.00 from holding EZCORP Inc or generate 45.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 0.27% |
| Values | Daily Returns |
EZCORP Inc vs. Moneygram Int
Performance |
| Timeline |
| EZCORP Inc |
| Moneygram Int |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
EZCORP and Moneygram Int Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EZCORP and Moneygram Int
The main advantage of trading using opposite EZCORP and Moneygram Int positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EZCORP position performs unexpectedly, Moneygram Int 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 Moneygram Int will offset losses from the drop in Moneygram Int's long position.The idea behind EZCORP Inc and Moneygram Int 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.| Moneygram Int vs. SLM Corp | Moneygram Int vs. Orix Corp Ads | Moneygram Int vs. FirstCash | Moneygram Int vs. Medallion Financial 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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