Correlation Between MCB GROUP and LOTTOTECH
Can any of the company-specific risk be diversified away by investing in both MCB GROUP and LOTTOTECH 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 MCB GROUP and LOTTOTECH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MCB GROUP LIMITED and LOTTOTECH LTD, you can compare the effects of market volatilities on MCB GROUP and LOTTOTECH 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 LOTTOTECH. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCB GROUP and LOTTOTECH.
Diversification Opportunities for MCB GROUP and LOTTOTECH
Significant diversification
The 3 months correlation between MCB and LOTTOTECH is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding MCB GROUP LIMITED and LOTTOTECH LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LOTTOTECH 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 LIMITED are associated (or correlated) with LOTTOTECH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LOTTOTECH LTD has no effect on the direction of MCB GROUP i.e., MCB GROUP and LOTTOTECH go up and down completely randomly.
Pair Corralation between MCB GROUP and LOTTOTECH
Assuming the 90 days trading horizon MCB GROUP LIMITED is expected to generate 0.39 times more return on investment than LOTTOTECH. However, MCB GROUP LIMITED is 2.56 times less risky than LOTTOTECH. It trades about 0.11 of its potential returns per unit of risk. LOTTOTECH LTD is currently generating about -0.03 per unit of risk. If you would invest 30,800 in MCB GROUP LIMITED on September 12, 2024 and sell it today you would earn a total of 13,700 from holding MCB GROUP LIMITED or generate 44.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
MCB GROUP LIMITED vs. LOTTOTECH LTD
Performance |
| Timeline |
| MCB GROUP LIMITED |
| LOTTOTECH LTD |
MCB GROUP and LOTTOTECH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCB GROUP and LOTTOTECH
The main advantage of trading using opposite MCB GROUP and LOTTOTECH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCB GROUP position performs unexpectedly, LOTTOTECH 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 LOTTOTECH will offset losses from the drop in LOTTOTECH's long position.| MCB GROUP vs. UNITED INVESTMENTS LTD | MCB GROUP vs. PHOENIX BEVERAGES LTD | MCB GROUP vs. QUALITY BEVERAGES LTD | MCB GROUP vs. FINCORP INVESTMENT LTD |
| LOTTOTECH vs. FINCORP INVESTMENT LTD | LOTTOTECH vs. LUX ISLAND RESORTS | LOTTOTECH vs. PSG FINANCIAL SERVICES | LOTTOTECH vs. NEW MAURITIUS HOTELS |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |