Correlation Between Moneygram Int and SLM Corp
Can any of the company-specific risk be diversified away by investing in both Moneygram Int and SLM Corp 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 SLM Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Moneygram Int and SLM Corp, you can compare the effects of market volatilities on Moneygram Int and SLM Corp 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 SLM Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Moneygram Int and SLM Corp.
Diversification Opportunities for Moneygram Int and SLM Corp
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Moneygram and SLM is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Moneygram Int and SLM Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SLM Corp 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 SLM Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SLM Corp has no effect on the direction of Moneygram Int i.e., Moneygram Int and SLM Corp go up and down completely randomly.
Pair Corralation between Moneygram Int and SLM Corp
If you would invest 2,256 in SLM Corp on August 31, 2024 and sell it today you would earn a total of 464.00 from holding SLM Corp or generate 20.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Moneygram Int vs. SLM Corp
Performance |
| Timeline |
| Moneygram Int |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| SLM Corp |
Moneygram Int and SLM Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Moneygram Int and SLM Corp
The main advantage of trading using opposite Moneygram Int and SLM Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Moneygram Int position performs unexpectedly, SLM Corp 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 SLM Corp will offset losses from the drop in SLM Corp's long position.| Moneygram Int vs. SLM Corp | Moneygram Int vs. Orix Corp Ads | Moneygram Int vs. FirstCash | Moneygram Int vs. Medallion Financial Corp |
| SLM Corp vs. Orix Corp Ads | SLM Corp vs. FirstCash | SLM Corp vs. Medallion Financial Corp | SLM Corp vs. Oportun 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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