Correlation Between Mercurity Fintech and OFX Group
Can any of the company-specific risk be diversified away by investing in both Mercurity Fintech and OFX Group 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 OFX Group 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 OFX Group Ltd, you can compare the effects of market volatilities on Mercurity Fintech and OFX Group 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 OFX Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mercurity Fintech and OFX Group.
Diversification Opportunities for Mercurity Fintech and OFX Group
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Mercurity and OFX is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Mercurity Fintech Holding and OFX Group Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OFX Group 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 OFX Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OFX Group has no effect on the direction of Mercurity Fintech i.e., Mercurity Fintech and OFX Group go up and down completely randomly.
Pair Corralation between Mercurity Fintech and OFX Group
If you would invest 125.00 in Mercurity Fintech Holding on August 30, 2024 and sell it today you would earn a total of 485.00 from holding Mercurity Fintech Holding or generate 388.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Mercurity Fintech Holding vs. OFX Group Ltd
Performance |
| Timeline |
| Mercurity Fintech Holding |
| OFX Group |
Mercurity Fintech and OFX Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mercurity Fintech and OFX Group
The main advantage of trading using opposite Mercurity Fintech and OFX Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mercurity Fintech position performs unexpectedly, OFX Group 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 OFX Group will offset losses from the drop in OFX Group's long position.| Mercurity Fintech vs. Scully Royalty | Mercurity Fintech vs. Donnelley Financial Solutions | Mercurity Fintech vs. Heritage Global | Mercurity Fintech vs. Oppenheimer Holdings |
| OFX Group vs. Apple Inc | OFX Group vs. Microsoft | OFX Group vs. Alphabet Inc Class C | OFX Group vs. Meta Platforms |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |