Correlation Between Mercantile Investment and Auction Technology
Can any of the company-specific risk be diversified away by investing in both Mercantile Investment and Auction Technology 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 Mercantile Investment and Auction Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Mercantile Investment and Auction Technology Group, you can compare the effects of market volatilities on Mercantile Investment and Auction Technology 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 Mercantile Investment with a short position of Auction Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mercantile Investment and Auction Technology.
Diversification Opportunities for Mercantile Investment and Auction Technology
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Mercantile and Auction is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding The Mercantile Investment and Auction Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Auction Technology and Mercantile Investment 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 The Mercantile Investment are associated (or correlated) with Auction Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Auction Technology has no effect on the direction of Mercantile Investment i.e., Mercantile Investment and Auction Technology go up and down completely randomly.
Pair Corralation between Mercantile Investment and Auction Technology
Assuming the 90 days trading horizon The Mercantile Investment is expected to generate 0.42 times more return on investment than Auction Technology. However, The Mercantile Investment is 2.38 times less risky than Auction Technology. It trades about 0.02 of its potential returns per unit of risk. Auction Technology Group is currently generating about -0.01 per unit of risk. If you would invest 20,585 in The Mercantile Investment on October 12, 2024 and sell it today you would earn a total of 1,415 from holding The Mercantile Investment or generate 6.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
The Mercantile Investment vs. Auction Technology Group
Performance |
| Timeline |
| The Mercantile Investment |
| Auction Technology |
Mercantile Investment and Auction Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mercantile Investment and Auction Technology
The main advantage of trading using opposite Mercantile Investment and Auction Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mercantile Investment position performs unexpectedly, Auction Technology 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 Auction Technology will offset losses from the drop in Auction Technology's long position.| Mercantile Investment vs. SupplyMe Capital PLC | Mercantile Investment vs. SM Energy Co | Mercantile Investment vs. FuelCell Energy | Mercantile Investment vs. Grand Vision Media |
| Auction Technology vs. Wizz Air Holdings | Auction Technology vs. British American Tobacco | Auction Technology vs. Playtech Plc | Auction Technology vs. JD Sports Fashion |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |