Correlation Between Mongolia Growth and Frp Holdings
Can any of the company-specific risk be diversified away by investing in both Mongolia Growth and Frp Holdings 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 Frp Holdings 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 Frp Holdings Ord, you can compare the effects of market volatilities on Mongolia Growth and Frp Holdings 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 Frp Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mongolia Growth and Frp Holdings.
Diversification Opportunities for Mongolia Growth and Frp Holdings
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Mongolia and Frp is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Mongolia Growth Group and Frp Holdings Ord in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Frp Holdings Ord 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 Frp Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Frp Holdings Ord has no effect on the direction of Mongolia Growth i.e., Mongolia Growth and Frp Holdings go up and down completely randomly.
Pair Corralation between Mongolia Growth and Frp Holdings
Assuming the 90 days horizon Mongolia Growth Group is expected to generate 1.62 times more return on investment than Frp Holdings. However, Mongolia Growth is 1.62 times more volatile than Frp Holdings Ord. It trades about 0.02 of its potential returns per unit of risk. Frp Holdings Ord is currently generating about 0.02 per unit of risk. If you would invest 89.00 in Mongolia Growth Group on September 2, 2024 and sell it today you would earn a total of 8.00 from holding Mongolia Growth Group or generate 8.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mongolia Growth Group vs. Frp Holdings Ord
Performance |
| Timeline |
| Mongolia Growth Group |
| Frp Holdings Ord |
Mongolia Growth and Frp Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mongolia Growth and Frp Holdings
The main advantage of trading using opposite Mongolia Growth and Frp Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mongolia Growth position performs unexpectedly, Frp Holdings 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 Frp Holdings will offset losses from the drop in Frp Holdings' long position.| Mongolia Growth vs. Metrospaces | Mongolia Growth vs. Ke Holdings | Mongolia Growth vs. Ucommune International | Mongolia Growth vs. MDJM |
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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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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