Correlation Between Mongolia Growth and FLJ Old
Can any of the company-specific risk be diversified away by investing in both Mongolia Growth and FLJ Old 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 Mongolia Growth and FLJ Old into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mongolia Growth Group and FLJ Old, you can compare the effects of market volatilities on Mongolia Growth and FLJ Old 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 Mongolia Growth with a short position of FLJ Old. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mongolia Growth and FLJ Old.
Diversification Opportunities for Mongolia Growth and FLJ Old
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Mongolia and FLJ is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Mongolia Growth Group and FLJ Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FLJ Old and Mongolia Growth 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 Mongolia Growth Group are associated (or correlated) with FLJ Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FLJ Old has no effect on the direction of Mongolia Growth i.e., Mongolia Growth and FLJ Old go up and down completely randomly.
Pair Corralation between Mongolia Growth and FLJ Old
If you would invest 119.00 in FLJ Old on November 3, 2024 and sell it today you would earn a total of 0.00 from holding FLJ Old or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Mongolia Growth Group vs. FLJ Old
Performance |
| Timeline |
| Mongolia Growth Group |
| FLJ Old |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Mongolia Growth and FLJ Old Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mongolia Growth and FLJ Old
The main advantage of trading using opposite Mongolia Growth and FLJ Old positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mongolia Growth position performs unexpectedly, FLJ Old 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 FLJ Old will offset losses from the drop in FLJ Old's long position.| Mongolia Growth vs. Metrospaces | Mongolia Growth vs. Ke Holdings | Mongolia Growth vs. Ucommune International | Mongolia Growth vs. New Concept Energy |
| FLJ Old vs. Ucommune International | FLJ Old vs. New Concept Energy | FLJ Old vs. Maui Land Pineapple | FLJ Old vs. Marcus Millichap |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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