Correlation Between MA Financial and Harvey Norman
Can any of the company-specific risk be diversified away by investing in both MA Financial and Harvey Norman 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 Harvey Norman 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 Harvey Norman Holdings, you can compare the effects of market volatilities on MA Financial and Harvey Norman 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 Harvey Norman. Check out your portfolio center. Please also check ongoing floating volatility patterns of MA Financial and Harvey Norman.
Diversification Opportunities for MA Financial and Harvey Norman
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between MAF and Harvey is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding MA Financial Group and Harvey Norman Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harvey Norman Holdings 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 Harvey Norman. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harvey Norman Holdings has no effect on the direction of MA Financial i.e., MA Financial and Harvey Norman go up and down completely randomly.
Pair Corralation between MA Financial and Harvey Norman
Assuming the 90 days trading horizon MA Financial Group is expected to generate 1.65 times more return on investment than Harvey Norman. However, MA Financial is 1.65 times more volatile than Harvey Norman Holdings. It trades about 0.04 of its potential returns per unit of risk. Harvey Norman Holdings is currently generating about 0.04 per unit of risk. If you would invest 418.00 in MA Financial Group on September 3, 2024 and sell it today you would earn a total of 203.00 from holding MA Financial Group or generate 48.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MA Financial Group vs. Harvey Norman Holdings
Performance |
| Timeline |
| MA Financial Group |
| Harvey Norman Holdings |
MA Financial and Harvey Norman Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MA Financial and Harvey Norman
The main advantage of trading using opposite MA Financial and Harvey Norman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MA Financial position performs unexpectedly, Harvey Norman 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 Harvey Norman will offset losses from the drop in Harvey Norman's long position.| MA Financial vs. Audio Pixels Holdings | MA Financial vs. Iodm | MA Financial vs. TTG Fintech | MA Financial vs. Mantle Minerals Limited |
| Harvey Norman vs. 29Metals | Harvey Norman vs. Macquarie Technology Group | Harvey Norman vs. Perseus Mining | Harvey Norman vs. Green Technology 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |