Correlation Between Moving IMage and Newcore Gold
Can any of the company-specific risk be diversified away by investing in both Moving IMage and Newcore Gold 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 Moving IMage and Newcore Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Moving iMage Technologies and Newcore Gold, you can compare the effects of market volatilities on Moving IMage and Newcore Gold 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 Moving IMage with a short position of Newcore Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Moving IMage and Newcore Gold.
Diversification Opportunities for Moving IMage and Newcore Gold
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Moving and Newcore is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Moving iMage Technologies and Newcore Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Newcore Gold and Moving IMage 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 Moving iMage Technologies are associated (or correlated) with Newcore Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Newcore Gold has no effect on the direction of Moving IMage i.e., Moving IMage and Newcore Gold go up and down completely randomly.
Pair Corralation between Moving IMage and Newcore Gold
Given the investment horizon of 90 days Moving iMage Technologies is expected to generate 3.58 times more return on investment than Newcore Gold. However, Moving IMage is 3.58 times more volatile than Newcore Gold. It trades about 0.09 of its potential returns per unit of risk. Newcore Gold is currently generating about 0.23 per unit of risk. If you would invest 68.00 in Moving iMage Technologies on November 2, 2024 and sell it today you would earn a total of 6.00 from holding Moving iMage Technologies or generate 8.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Moving iMage Technologies vs. Newcore Gold
Performance |
| Timeline |
| Moving iMage Technologies |
| Newcore Gold |
Moving IMage and Newcore Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Moving IMage and Newcore Gold
The main advantage of trading using opposite Moving IMage and Newcore Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Moving IMage position performs unexpectedly, Newcore Gold 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 Newcore Gold will offset losses from the drop in Newcore Gold's long position.| Moving IMage vs. Franklin Wireless Corp | Moving IMage vs. Wialan Technologies | Moving IMage vs. TPT Global Tech | Moving IMage vs. Comtech Telecommunications Corp |
| Newcore Gold vs. Almadex Minerals | Newcore Gold vs. Revival Gold | Newcore Gold vs. Galiano Gold | Newcore Gold vs. US Gold 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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