Correlation Between MGO Global and Mirriad Advertising
Can any of the company-specific risk be diversified away by investing in both MGO Global and Mirriad Advertising 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 Mirriad Advertising 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 Mirriad Advertising plc, you can compare the effects of market volatilities on MGO Global and Mirriad Advertising 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 Mirriad Advertising. Check out your portfolio center. Please also check ongoing floating volatility patterns of MGO Global and Mirriad Advertising.
Diversification Opportunities for MGO Global and Mirriad Advertising
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between MGO and Mirriad is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding MGO Global Common and Mirriad Advertising plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mirriad Advertising plc 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 Mirriad Advertising. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mirriad Advertising plc has no effect on the direction of MGO Global i.e., MGO Global and Mirriad Advertising go up and down completely randomly.
Pair Corralation between MGO Global and Mirriad Advertising
Given the investment horizon of 90 days MGO Global Common is expected to generate 6.57 times more return on investment than Mirriad Advertising. However, MGO Global is 6.57 times more volatile than Mirriad Advertising plc. It trades about 0.05 of its potential returns per unit of risk. Mirriad Advertising plc is currently generating about -0.04 per unit of risk. If you would invest 0.05 in MGO Global Common on September 3, 2024 and sell it today you would earn a total of 233.95 from holding MGO Global Common or generate 467900.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
MGO Global Common vs. Mirriad Advertising plc
Performance |
| Timeline |
| MGO Global Common |
| Mirriad Advertising plc |
MGO Global and Mirriad Advertising Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MGO Global and Mirriad Advertising
The main advantage of trading using opposite MGO Global and Mirriad Advertising positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MGO Global position performs unexpectedly, Mirriad Advertising 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 Mirriad Advertising will offset losses from the drop in Mirriad Advertising'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 |
| Mirriad Advertising vs. INEO Tech Corp | Mirriad Advertising vs. Marchex | Mirriad Advertising vs. Snipp Interactive | Mirriad Advertising vs. Emerald Expositions Events |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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