Correlation Between Mercurity Fintech and Booz Allen
Can any of the company-specific risk be diversified away by investing in both Mercurity Fintech and Booz Allen 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 Mercurity Fintech and Booz Allen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mercurity Fintech Holding and Booz Allen Hamilton, you can compare the effects of market volatilities on Mercurity Fintech and Booz Allen 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 Mercurity Fintech with a short position of Booz Allen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mercurity Fintech and Booz Allen.
Diversification Opportunities for Mercurity Fintech and Booz Allen
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Mercurity and Booz is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Mercurity Fintech Holding and Booz Allen Hamilton in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Booz Allen Hamilton and Mercurity Fintech 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 Mercurity Fintech Holding are associated (or correlated) with Booz Allen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Booz Allen Hamilton has no effect on the direction of Mercurity Fintech i.e., Mercurity Fintech and Booz Allen go up and down completely randomly.
Pair Corralation between Mercurity Fintech and Booz Allen
Considering the 90-day investment horizon Mercurity Fintech Holding is expected to generate 1.76 times more return on investment than Booz Allen. However, Mercurity Fintech is 1.76 times more volatile than Booz Allen Hamilton. It trades about -0.03 of its potential returns per unit of risk. Booz Allen Hamilton is currently generating about -0.28 per unit of risk. If you would invest 747.00 in Mercurity Fintech Holding on November 18, 2024 and sell it today you would lose (30.00) from holding Mercurity Fintech Holding or give up 4.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mercurity Fintech Holding vs. Booz Allen Hamilton
Performance |
| Timeline |
| Mercurity Fintech Holding |
| Booz Allen Hamilton |
Mercurity Fintech and Booz Allen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mercurity Fintech and Booz Allen
The main advantage of trading using opposite Mercurity Fintech and Booz Allen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mercurity Fintech position performs unexpectedly, Booz Allen 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 Booz Allen will offset losses from the drop in Booz Allen's long position.| Mercurity Fintech vs. Scully Royalty | Mercurity Fintech vs. Donnelley Financial Solutions | Mercurity Fintech vs. Heritage Global | Mercurity Fintech vs. Oppenheimer Holdings |
| Booz Allen vs. Huron Consulting Group | Booz Allen vs. CRA International | Booz Allen vs. Forrester Research | Booz Allen vs. Exponent |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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