Correlation Between MGO Global and Marchex
Can any of the company-specific risk be diversified away by investing in both MGO Global and Marchex 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 Marchex 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 Marchex, you can compare the effects of market volatilities on MGO Global and Marchex 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 Marchex. Check out your portfolio center. Please also check ongoing floating volatility patterns of MGO Global and Marchex.
Diversification Opportunities for MGO Global and Marchex
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between MGO and Marchex is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding MGO Global Common and Marchex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marchex 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 Marchex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marchex has no effect on the direction of MGO Global i.e., MGO Global and Marchex go up and down completely randomly.
Pair Corralation between MGO Global and Marchex
Given the investment horizon of 90 days MGO Global Common is expected to generate 8.45 times more return on investment than Marchex. However, MGO Global is 8.45 times more volatile than Marchex. It trades about 0.04 of its potential returns per unit of risk. Marchex is currently generating about 0.05 per unit of risk. If you would invest 447.00 in MGO Global Common on September 2, 2024 and sell it today you would lose (213.00) from holding MGO Global Common or give up 47.65% 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. Marchex
Performance |
| Timeline |
| MGO Global Common |
| Marchex |
MGO Global and Marchex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MGO Global and Marchex
The main advantage of trading using opposite MGO Global and Marchex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MGO Global position performs unexpectedly, Marchex 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 Marchex will offset losses from the drop in Marchex's long position.| MGO Global vs. ADTRAN Inc | MGO Global vs. Belden Inc | MGO Global vs. ADC Therapeutics SA | MGO Global vs. Comtech Telecommunications Corp |
| Marchex vs. Entravision Communications | Marchex vs. Direct Digital Holdings | Marchex vs. Cimpress NV | Marchex vs. Townsquare Media |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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