Correlation Between MFF Capital and Dug Technology
Can any of the company-specific risk be diversified away by investing in both MFF Capital and Dug Technology 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 Dug Technology 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 Dug Technology, you can compare the effects of market volatilities on MFF Capital and Dug Technology 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 Dug Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of MFF Capital and Dug Technology.
Diversification Opportunities for MFF Capital and Dug Technology
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MFF and Dug is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding MFF Capital Investments and Dug Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dug Technology 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 Dug Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dug Technology has no effect on the direction of MFF Capital i.e., MFF Capital and Dug Technology go up and down completely randomly.
Pair Corralation between MFF Capital and Dug Technology
Assuming the 90 days trading horizon MFF Capital Investments is expected to generate 0.27 times more return on investment than Dug Technology. However, MFF Capital Investments is 3.68 times less risky than Dug Technology. It trades about 0.44 of its potential returns per unit of risk. Dug Technology is currently generating about -0.1 per unit of risk. If you would invest 393.00 in MFF Capital Investments on September 4, 2024 and sell it today you would earn a total of 42.00 from holding MFF Capital Investments or generate 10.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
MFF Capital Investments vs. Dug Technology
Performance |
| Timeline |
| MFF Capital Investments |
| Dug Technology |
MFF Capital and Dug Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MFF Capital and Dug Technology
The main advantage of trading using opposite MFF Capital and Dug Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MFF Capital position performs unexpectedly, Dug Technology 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 Dug Technology will offset losses from the drop in Dug Technology's long position.| MFF Capital vs. Global Health | MFF Capital vs. Healthco Healthcare and | MFF Capital vs. Beston Global Food | MFF Capital vs. BTC Health Limited |
| Dug Technology vs. Aneka Tambang Tbk | Dug Technology vs. Commonwealth Bank of | Dug Technology vs. Australia and New | Dug Technology vs. ANZ Group Holdings |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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