Correlation Between MKDWELL Tech and JE Cleantech
Can any of the company-specific risk be diversified away by investing in both MKDWELL Tech and JE Cleantech 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 MKDWELL Tech and JE Cleantech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MKDWELL Tech Warrants and JE Cleantech Holdings, you can compare the effects of market volatilities on MKDWELL Tech and JE Cleantech 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 MKDWELL Tech with a short position of JE Cleantech. Check out your portfolio center. Please also check ongoing floating volatility patterns of MKDWELL Tech and JE Cleantech.
Diversification Opportunities for MKDWELL Tech and JE Cleantech
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between MKDWELL and JCSE is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding MKDWELL Tech Warrants and JE Cleantech Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JE Cleantech Holdings and MKDWELL Tech 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 MKDWELL Tech Warrants are associated (or correlated) with JE Cleantech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JE Cleantech Holdings has no effect on the direction of MKDWELL Tech i.e., MKDWELL Tech and JE Cleantech go up and down completely randomly.
Pair Corralation between MKDWELL Tech and JE Cleantech
Assuming the 90 days horizon MKDWELL Tech Warrants is expected to generate 3.95 times more return on investment than JE Cleantech. However, MKDWELL Tech is 3.95 times more volatile than JE Cleantech Holdings. It trades about 0.15 of its potential returns per unit of risk. JE Cleantech Holdings is currently generating about 0.07 per unit of risk. If you would invest 1.12 in MKDWELL Tech Warrants on November 9, 2024 and sell it today you would lose (0.12) from holding MKDWELL Tech Warrants or give up 10.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 46.62% |
| Values | Daily Returns |
MKDWELL Tech Warrants vs. JE Cleantech Holdings
Performance |
| Timeline |
| MKDWELL Tech Warrants |
| JE Cleantech Holdings |
MKDWELL Tech and JE Cleantech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MKDWELL Tech and JE Cleantech
The main advantage of trading using opposite MKDWELL Tech and JE Cleantech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MKDWELL Tech position performs unexpectedly, JE Cleantech 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 JE Cleantech will offset losses from the drop in JE Cleantech's long position.| MKDWELL Tech vs. Babcock Wilcox Enterprises | MKDWELL Tech vs. Crane Company | MKDWELL Tech vs. Hillenbrand | MKDWELL Tech vs. Ingersoll Rand |
| JE Cleantech vs. Nuburu Inc | JE Cleantech vs. Laser Photonics | JE Cleantech vs. Reelcause | JE Cleantech vs. Quality Industrial 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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