Correlation Between MGO Global and Impact Fusion
Can any of the company-specific risk be diversified away by investing in both MGO Global and Impact Fusion 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 MGO Global and Impact Fusion into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MGO Global Common and Impact Fusion International, you can compare the effects of market volatilities on MGO Global and Impact Fusion 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 MGO Global with a short position of Impact Fusion. Check out your portfolio center. Please also check ongoing floating volatility patterns of MGO Global and Impact Fusion.
Diversification Opportunities for MGO Global and Impact Fusion
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between MGO and Impact is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding MGO Global Common and Impact Fusion International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Impact Fusion Intern and MGO Global 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 MGO Global Common are associated (or correlated) with Impact Fusion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Impact Fusion Intern has no effect on the direction of MGO Global i.e., MGO Global and Impact Fusion go up and down completely randomly.
Pair Corralation between MGO Global and Impact Fusion
Given the investment horizon of 90 days MGO Global Common is expected to under-perform the Impact Fusion. In addition to that, MGO Global is 3.02 times more volatile than Impact Fusion International. It trades about -0.41 of its total potential returns per unit of risk. Impact Fusion International is currently generating about -0.29 per unit of volatility. If you would invest 4.24 in Impact Fusion International on November 2, 2024 and sell it today you would lose (1.18) from holding Impact Fusion International or give up 27.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MGO Global Common vs. Impact Fusion International
Performance |
| Timeline |
| MGO Global Common |
| Impact Fusion Intern |
MGO Global and Impact Fusion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MGO Global and Impact Fusion
The main advantage of trading using opposite MGO Global and Impact Fusion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MGO Global position performs unexpectedly, Impact Fusion 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 Impact Fusion will offset losses from the drop in Impact Fusion's long position.| MGO Global vs. Baosheng Media Group | MGO Global vs. National CineMedia | MGO Global vs. Glory Star New | MGO Global vs. Impact Fusion International |
| Impact Fusion vs. Digital Brand Media | Impact Fusion vs. Beyond Commerce | Impact Fusion vs. Glory Star New | Impact Fusion vs. Baosheng Media Group |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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