Correlation Between MMA Offshore and Weibo Corp
Can any of the company-specific risk be diversified away by investing in both MMA Offshore and Weibo Corp 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 Weibo Corp 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 Weibo Corp, you can compare the effects of market volatilities on MMA Offshore and Weibo Corp 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 Weibo Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of MMA Offshore and Weibo Corp.
Diversification Opportunities for MMA Offshore and Weibo Corp
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MMA and Weibo is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding MMA Offshore Limited and Weibo Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Weibo Corp 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 Weibo Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Weibo Corp has no effect on the direction of MMA Offshore i.e., MMA Offshore and Weibo Corp go up and down completely randomly.
Pair Corralation between MMA Offshore and Weibo Corp
Assuming the 90 days horizon MMA Offshore Limited is expected to generate 19.94 times more return on investment than Weibo Corp. However, MMA Offshore is 19.94 times more volatile than Weibo Corp. It trades about 0.08 of its potential returns per unit of risk. Weibo Corp is currently generating about 0.01 per unit of risk. If you would invest 16.00 in MMA Offshore Limited on September 14, 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 | 63.57% |
| Values | Daily Returns |
MMA Offshore Limited vs. Weibo Corp
Performance |
| Timeline |
| MMA Offshore Limited |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Weibo Corp |
MMA Offshore and Weibo Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MMA Offshore and Weibo Corp
The main advantage of trading using opposite MMA Offshore and Weibo Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MMA Offshore position performs unexpectedly, Weibo Corp 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 Weibo Corp will offset losses from the drop in Weibo Corp's long position.| MMA Offshore vs. Weibo Corp | MMA Offshore vs. HF Sinclair Corp | MMA Offshore vs. Mesa Air Group | MMA Offshore vs. Sphere Entertainment Co |
| Weibo Corp vs. YY Inc Class | Weibo Corp vs. DouYu International Holdings | Weibo Corp vs. Tencent Music Entertainment | Weibo Corp vs. Autohome |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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