Correlation Between MMA Offshore and Bassett Furniture
Can any of the company-specific risk be diversified away by investing in both MMA Offshore and Bassett Furniture 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 MMA Offshore and Bassett Furniture into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MMA Offshore Limited and Bassett Furniture Industries, you can compare the effects of market volatilities on MMA Offshore and Bassett Furniture 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 MMA Offshore with a short position of Bassett Furniture. Check out your portfolio center. Please also check ongoing floating volatility patterns of MMA Offshore and Bassett Furniture.
Diversification Opportunities for MMA Offshore and Bassett Furniture
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MMA and Bassett is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding MMA Offshore Limited and Bassett Furniture Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bassett Furniture and MMA Offshore 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 MMA Offshore Limited are associated (or correlated) with Bassett Furniture. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bassett Furniture has no effect on the direction of MMA Offshore i.e., MMA Offshore and Bassett Furniture go up and down completely randomly.
Pair Corralation between MMA Offshore and Bassett Furniture
Assuming the 90 days horizon MMA Offshore Limited is expected to generate 33.49 times more return on investment than Bassett Furniture. However, MMA Offshore is 33.49 times more volatile than Bassett Furniture Industries. It trades about 0.08 of its potential returns per unit of risk. Bassett Furniture Industries is currently generating about -0.01 per unit of risk. If you would invest 16.00 in MMA Offshore Limited on September 2, 2024 and sell it today you would earn a total of 134.00 from holding MMA Offshore Limited or generate 837.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 64.11% |
| Values | Daily Returns |
MMA Offshore Limited vs. Bassett Furniture Industries
Performance |
| Timeline |
| MMA Offshore Limited |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Bassett Furniture |
MMA Offshore and Bassett Furniture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MMA Offshore and Bassett Furniture
The main advantage of trading using opposite MMA Offshore and Bassett Furniture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MMA Offshore position performs unexpectedly, Bassett Furniture 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 Bassett Furniture will offset losses from the drop in Bassett Furniture's long position.| MMA Offshore vs. SunOpta | MMA Offshore vs. Everspin Technologies | MMA Offshore vs. ON Semiconductor | MMA Offshore vs. Aehr Test Systems |
| Bassett Furniture vs. Willis Lease Finance | Bassett Furniture vs. Rocky Brands | Bassett Furniture vs. First Business Financial |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |