Correlation Between FirstCash and Moneygram Int
Can any of the company-specific risk be diversified away by investing in both FirstCash 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 FirstCash and Moneygram Int into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FirstCash and Moneygram Int, you can compare the effects of market volatilities on FirstCash 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 FirstCash with a short position of Moneygram Int. Check out your portfolio center. Please also check ongoing floating volatility patterns of FirstCash and Moneygram Int.
Diversification Opportunities for FirstCash and Moneygram Int
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between FirstCash and Moneygram is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding FirstCash and Moneygram Int in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Moneygram Int and FirstCash 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 FirstCash 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 FirstCash i.e., FirstCash and Moneygram Int go up and down completely randomly.
Pair Corralation between FirstCash and Moneygram Int
If you would invest 9,529 in FirstCash on August 27, 2024 and sell it today you would earn a total of 911.00 from holding FirstCash or generate 9.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 1.07% |
| Values | Daily Returns |
FirstCash vs. Moneygram Int
Performance |
| Timeline |
| FirstCash |
| Moneygram Int |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
FirstCash and Moneygram Int Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FirstCash and Moneygram Int
The main advantage of trading using opposite FirstCash and Moneygram Int positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FirstCash 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.| FirstCash vs. World Acceptance | FirstCash vs. Enova International | FirstCash vs. Green Dot | FirstCash vs. Medallion Financial Corp |
| 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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