Correlation Between MA Financial and Dug Technology
Can any of the company-specific risk be diversified away by investing in both MA Financial and Dug Technology 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 Dug Technology 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 Dug Technology, you can compare the effects of market volatilities on MA Financial and Dug Technology 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 Dug Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of MA Financial and Dug Technology.
Diversification Opportunities for MA Financial and Dug Technology
-0.88 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MAF and Dug is -0.88. Overlapping area represents the amount of risk that can be diversified away by holding MA Financial Group and Dug Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dug Technology 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 Dug Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dug Technology has no effect on the direction of MA Financial i.e., MA Financial and Dug Technology go up and down completely randomly.
Pair Corralation between MA Financial and Dug Technology
Assuming the 90 days trading horizon MA Financial Group is expected to generate 0.82 times more return on investment than Dug Technology. However, MA Financial Group is 1.22 times less risky than Dug Technology. It trades about 0.1 of its potential returns per unit of risk. Dug Technology is currently generating about -0.1 per unit of risk. If you would invest 468.00 in MA Financial Group on August 30, 2024 and sell it today you would earn a total of 152.00 from holding MA Financial Group or generate 32.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MA Financial Group vs. Dug Technology
Performance |
| Timeline |
| MA Financial Group |
| Dug Technology |
MA Financial and Dug Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MA Financial and Dug Technology
The main advantage of trading using opposite MA Financial and Dug Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MA Financial position performs unexpectedly, Dug Technology 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 Dug Technology will offset losses from the drop in Dug Technology's long position.| MA Financial vs. Nova Eye Medical | MA Financial vs. Charter Hall Education | MA Financial vs. ABACUS STORAGE KING | MA Financial vs. Alto Metals |
| Dug Technology vs. Westpac Banking | Dug Technology vs. Ecofibre | Dug Technology vs. iShares Global Healthcare | Dug Technology vs. Adriatic Metals Plc |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |