Correlation Between MA Financial and ACDC Metals
Can any of the company-specific risk be diversified away by investing in both MA Financial and ACDC Metals 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 MA Financial and ACDC Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MA Financial Group and ACDC Metals, you can compare the effects of market volatilities on MA Financial and ACDC Metals 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 MA Financial with a short position of ACDC Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of MA Financial and ACDC Metals.
Diversification Opportunities for MA Financial and ACDC Metals
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between MAF and ACDC is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding MA Financial Group and ACDC Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ACDC Metals and MA Financial 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 MA Financial Group are associated (or correlated) with ACDC Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ACDC Metals has no effect on the direction of MA Financial i.e., MA Financial and ACDC Metals go up and down completely randomly.
Pair Corralation between MA Financial and ACDC Metals
Assuming the 90 days trading horizon MA Financial Group is expected to generate 0.52 times more return on investment than ACDC Metals. However, MA Financial Group is 1.93 times less risky than ACDC Metals. It trades about 0.03 of its potential returns per unit of risk. ACDC Metals is currently generating about 0.01 per unit of risk. If you would invest 557.00 in MA Financial Group on September 14, 2024 and sell it today you would earn a total of 53.00 from holding MA Financial Group or generate 9.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MA Financial Group vs. ACDC Metals
Performance |
| Timeline |
| MA Financial Group |
| ACDC Metals |
MA Financial and ACDC Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MA Financial and ACDC Metals
The main advantage of trading using opposite MA Financial and ACDC Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MA Financial position performs unexpectedly, ACDC Metals 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 ACDC Metals will offset losses from the drop in ACDC Metals' long position.| MA Financial vs. Perseus Mining | MA Financial vs. Stelar Metals | MA Financial vs. MetalsGrove Mining | MA Financial vs. Farm Pride Foods |
| ACDC Metals vs. Centuria Industrial Reit | ACDC Metals vs. Global Data Centre | ACDC Metals vs. Mayfield Childcare | ACDC Metals vs. Aurelia Metals |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |