Correlation Between Mayfair Gold and DIH Holding
Can any of the company-specific risk be diversified away by investing in both Mayfair Gold and DIH Holding 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 Mayfair Gold and DIH Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mayfair Gold Corp and DIH Holding US,, you can compare the effects of market volatilities on Mayfair Gold and DIH Holding 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 Mayfair Gold with a short position of DIH Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mayfair Gold and DIH Holding.
Diversification Opportunities for Mayfair Gold and DIH Holding
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mayfair and DIH is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Mayfair Gold Corp and DIH Holding US, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DIH Holding US, and Mayfair Gold 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 Mayfair Gold Corp are associated (or correlated) with DIH Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DIH Holding US, has no effect on the direction of Mayfair Gold i.e., Mayfair Gold and DIH Holding go up and down completely randomly.
Pair Corralation between Mayfair Gold and DIH Holding
Assuming the 90 days horizon Mayfair Gold Corp is expected to under-perform the DIH Holding. But the otc stock apears to be less risky and, when comparing its historical volatility, Mayfair Gold Corp is 6.75 times less risky than DIH Holding. The otc stock trades about 0.0 of its potential returns per unit of risk. The DIH Holding US, is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 5.00 in DIH Holding US, on October 22, 2024 and sell it today you would lose (0.65) from holding DIH Holding US, or give up 13.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 94.74% |
| Values | Daily Returns |
Mayfair Gold Corp vs. DIH Holding US,
Performance |
| Timeline |
| Mayfair Gold Corp |
| DIH Holding US, |
Mayfair Gold and DIH Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mayfair Gold and DIH Holding
The main advantage of trading using opposite Mayfair Gold and DIH Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mayfair Gold position performs unexpectedly, DIH Holding 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 DIH Holding will offset losses from the drop in DIH Holding's long position.| Mayfair Gold vs. Agnico Eagle Mines | Mayfair Gold vs. B2Gold Corp | Mayfair Gold vs. Pan American Silver | Mayfair Gold vs. Gold Fields Ltd |
| DIH Holding vs. Jerash Holdings | DIH Holding vs. DiamondRock Hospitality | DIH Holding vs. Triumph Apparel | DIH Holding vs. Shake Shack |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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