Correlation Between MFF Capital and Actinogen Medical
Can any of the company-specific risk be diversified away by investing in both MFF Capital and Actinogen Medical 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 MFF Capital and Actinogen Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MFF Capital Investments and Actinogen Medical, you can compare the effects of market volatilities on MFF Capital and Actinogen Medical 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 MFF Capital with a short position of Actinogen Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of MFF Capital and Actinogen Medical.
Diversification Opportunities for MFF Capital and Actinogen Medical
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between MFF and Actinogen is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding MFF Capital Investments and Actinogen Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Actinogen Medical and MFF Capital 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 MFF Capital Investments are associated (or correlated) with Actinogen Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Actinogen Medical has no effect on the direction of MFF Capital i.e., MFF Capital and Actinogen Medical go up and down completely randomly.
Pair Corralation between MFF Capital and Actinogen Medical
Assuming the 90 days trading horizon MFF Capital Investments is expected to generate 0.13 times more return on investment than Actinogen Medical. However, MFF Capital Investments is 7.73 times less risky than Actinogen Medical. It trades about 0.15 of its potential returns per unit of risk. Actinogen Medical is currently generating about 0.01 per unit of risk. If you would invest 213.00 in MFF Capital Investments on September 2, 2024 and sell it today you would earn a total of 218.00 from holding MFF Capital Investments or generate 102.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MFF Capital Investments vs. Actinogen Medical
Performance |
| Timeline |
| MFF Capital Investments |
| Actinogen Medical |
MFF Capital and Actinogen Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MFF Capital and Actinogen Medical
The main advantage of trading using opposite MFF Capital and Actinogen Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MFF Capital position performs unexpectedly, Actinogen Medical 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 Actinogen Medical will offset losses from the drop in Actinogen Medical's long position.| MFF Capital vs. Gold Road Resources | MFF Capital vs. 29Metals | MFF Capital vs. Land Homes Group | MFF Capital vs. Treasury Wine Estates |
| Actinogen Medical vs. Aneka Tambang Tbk | Actinogen Medical vs. Commonwealth Bank | Actinogen Medical vs. Commonwealth Bank of | Actinogen Medical vs. Australia and New |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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