Correlation Between Mader Group and Network 1
Can any of the company-specific risk be diversified away by investing in both Mader Group and Network 1 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 Mader Group and Network 1 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mader Group Limited and Network 1 Technologies, you can compare the effects of market volatilities on Mader Group and Network 1 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 Mader Group with a short position of Network 1. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mader Group and Network 1.
Diversification Opportunities for Mader Group and Network 1
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Mader and Network is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Mader Group Limited and Network 1 Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Network 1 Technologies and Mader Group 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 Mader Group Limited are associated (or correlated) with Network 1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Network 1 Technologies has no effect on the direction of Mader Group i.e., Mader Group and Network 1 go up and down completely randomly.
Pair Corralation between Mader Group and Network 1
Assuming the 90 days horizon Mader Group Limited is expected to generate 1.14 times more return on investment than Network 1. However, Mader Group is 1.14 times more volatile than Network 1 Technologies. It trades about 0.04 of its potential returns per unit of risk. Network 1 Technologies is currently generating about -0.02 per unit of risk. If you would invest 249.00 in Mader Group Limited on October 21, 2024 and sell it today you would earn a total of 108.00 from holding Mader Group Limited or generate 43.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mader Group Limited vs. Network 1 Technologies
Performance |
| Timeline |
| Mader Group Limited |
| Network 1 Technologies |
Mader Group and Network 1 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mader Group and Network 1
The main advantage of trading using opposite Mader Group and Network 1 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mader Group position performs unexpectedly, Network 1 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 Network 1 will offset losses from the drop in Network 1's long position.| Mader Group vs. Mako Mining Corp | Mader Group vs. Corsair Gaming | Mader Group vs. Mayfair Gold Corp | Mader Group vs. Cebu Air ADR |
| Network 1 vs. Civeo Corp | Network 1 vs. BrightView Holdings | Network 1 vs. Maximus | Network 1 vs. CBIZ Inc |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| CEOs Directory Screen CEOs from public companies around the world |