Correlation Between Moneygram Int and EZCORP
Can any of the company-specific risk be diversified away by investing in both Moneygram Int and EZCORP 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 Moneygram Int and EZCORP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Moneygram Int and EZCORP Inc, you can compare the effects of market volatilities on Moneygram Int and EZCORP 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 Moneygram Int with a short position of EZCORP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Moneygram Int and EZCORP.
Diversification Opportunities for Moneygram Int and EZCORP
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Moneygram and EZCORP is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Moneygram Int and EZCORP Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EZCORP Inc and Moneygram Int 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 Moneygram Int are associated (or correlated) with EZCORP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EZCORP Inc has no effect on the direction of Moneygram Int i.e., Moneygram Int and EZCORP go up and down completely randomly.
Pair Corralation between Moneygram Int and EZCORP
If you would invest 879.00 in EZCORP Inc on August 31, 2024 and sell it today you would earn a total of 401.00 from holding EZCORP Inc or generate 45.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 0.27% |
| Values | Daily Returns |
Moneygram Int vs. EZCORP Inc
Performance |
| Timeline |
| Moneygram Int |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| EZCORP Inc |
Moneygram Int and EZCORP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Moneygram Int and EZCORP
The main advantage of trading using opposite Moneygram Int and EZCORP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Moneygram Int position performs unexpectedly, EZCORP 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 EZCORP will offset losses from the drop in EZCORP's long position.| Moneygram Int vs. SLM Corp | Moneygram Int vs. Orix Corp Ads | Moneygram Int vs. FirstCash | Moneygram Int vs. Medallion Financial Corp |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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