Correlation Between MCB GROUP and UNITED INVESTMENTS
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By analyzing existing cross correlation between MCB GROUP LTD and UNITED INVESTMENTS LTD, you can compare the effects of market volatilities on MCB GROUP and UNITED INVESTMENTS 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 UNITED INVESTMENTS. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCB GROUP and UNITED INVESTMENTS.
Diversification Opportunities for MCB GROUP and UNITED INVESTMENTS
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between MCB and UNITED is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding MCB GROUP LTD and UNITED INVESTMENTS LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UNITED INVESTMENTS 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 UNITED INVESTMENTS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UNITED INVESTMENTS LTD has no effect on the direction of MCB GROUP i.e., MCB GROUP and UNITED INVESTMENTS go up and down completely randomly.
Pair Corralation between MCB GROUP and UNITED INVESTMENTS
Assuming the 90 days trading horizon MCB GROUP LTD is expected to generate 0.39 times more return on investment than UNITED INVESTMENTS. However, MCB GROUP LTD is 2.57 times less risky than UNITED INVESTMENTS. It trades about 0.06 of its potential returns per unit of risk. UNITED INVESTMENTS LTD is currently generating about -0.07 per unit of risk. If you would invest 1,050 in MCB GROUP LTD on October 26, 2024 and sell it today you would earn a total of 40.00 from holding MCB GROUP LTD or generate 3.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MCB GROUP LTD vs. UNITED INVESTMENTS LTD
Performance |
| Timeline |
| MCB GROUP LTD |
| UNITED INVESTMENTS LTD |
MCB GROUP and UNITED INVESTMENTS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCB GROUP and UNITED INVESTMENTS
The main advantage of trading using opposite MCB GROUP and UNITED INVESTMENTS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCB GROUP position performs unexpectedly, UNITED INVESTMENTS 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 UNITED INVESTMENTS will offset losses from the drop in UNITED INVESTMENTS's long position.| MCB GROUP vs. MAURITIUS CHEMICAL FERTILIZER | MCB GROUP vs. CAVELL TOURISTIC INVESTMENTS | MCB GROUP vs. AGAPE GLOBAL INVESTMENTS | MCB GROUP vs. ABC BANKING PORATION |
| UNITED INVESTMENTS vs. FINCORP INVESTMENT LTD | UNITED INVESTMENTS vs. UNIVERSAL PARTNERS LTD | UNITED INVESTMENTS vs. MCB GROUP LTD | UNITED INVESTMENTS vs. MUA LTD |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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