Correlation Between MCB GROUP and FINCORP INVESTMENT
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By analyzing existing cross correlation between MCB GROUP LTD and FINCORP INVESTMENT LTD, you can compare the effects of market volatilities on MCB GROUP and FINCORP INVESTMENT 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 MCB GROUP with a short position of FINCORP INVESTMENT. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCB GROUP and FINCORP INVESTMENT.
Diversification Opportunities for MCB GROUP and FINCORP INVESTMENT
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between MCB and FINCORP is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding MCB GROUP LTD and FINCORP INVESTMENT LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FINCORP INVESTMENT LTD and MCB 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 MCB GROUP LTD are associated (or correlated) with FINCORP INVESTMENT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FINCORP INVESTMENT LTD has no effect on the direction of MCB GROUP i.e., MCB GROUP and FINCORP INVESTMENT go up and down completely randomly.
Pair Corralation between MCB GROUP and FINCORP INVESTMENT
Assuming the 90 days trading horizon MCB GROUP LTD is expected to generate 0.77 times more return on investment than FINCORP INVESTMENT. However, MCB GROUP LTD is 1.3 times less risky than FINCORP INVESTMENT. It trades about 0.02 of its potential returns per unit of risk. FINCORP INVESTMENT LTD is currently generating about 0.01 per unit of risk. If you would invest 1,015 in MCB GROUP LTD on October 25, 2024 and sell it today you would earn a total of 75.00 from holding MCB GROUP LTD or generate 7.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.67% |
| Values | Daily Returns |
MCB GROUP LTD vs. FINCORP INVESTMENT LTD
Performance |
| Timeline |
| MCB GROUP LTD |
| FINCORP INVESTMENT LTD |
MCB GROUP and FINCORP INVESTMENT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCB GROUP and FINCORP INVESTMENT
The main advantage of trading using opposite MCB GROUP and FINCORP INVESTMENT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCB GROUP position performs unexpectedly, FINCORP INVESTMENT 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 FINCORP INVESTMENT will offset losses from the drop in FINCORP INVESTMENT's long position.| MCB GROUP vs. PHOENIX INVESTMENT PANY | MCB GROUP vs. ASTORIA INVESTMENT LTD | MCB GROUP vs. PSG FINANCIAL SERVICES | MCB GROUP vs. AGAPE GLOBAL INVESTMENTS |
| FINCORP INVESTMENT vs. AFRICA CLEAN ENERGY | FINCORP INVESTMENT vs. UNITED INVESTMENTS LTD | FINCORP INVESTMENT vs. AGAPE GLOBAL INVESTMENTS | FINCORP INVESTMENT vs. ABC BANKING PORATION |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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