Correlation Between MMTEC and Friendable
Can any of the company-specific risk be diversified away by investing in both MMTEC and Friendable 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 MMTEC and Friendable into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MMTEC Inc and Friendable, you can compare the effects of market volatilities on MMTEC and Friendable 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 MMTEC with a short position of Friendable. Check out your portfolio center. Please also check ongoing floating volatility patterns of MMTEC and Friendable.
Diversification Opportunities for MMTEC and Friendable
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between MMTEC and Friendable is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding MMTEC Inc and Friendable in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Friendable and MMTEC 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 MMTEC Inc are associated (or correlated) with Friendable. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Friendable has no effect on the direction of MMTEC i.e., MMTEC and Friendable go up and down completely randomly.
Pair Corralation between MMTEC and Friendable
Considering the 90-day investment horizon MMTEC Inc is expected to generate 2.04 times more return on investment than Friendable. However, MMTEC is 2.04 times more volatile than Friendable. It trades about 0.04 of its potential returns per unit of risk. Friendable is currently generating about 0.03 per unit of risk. If you would invest 107.00 in MMTEC Inc on August 25, 2024 and sell it today you would lose (84.00) from holding MMTEC Inc or give up 78.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MMTEC Inc vs. Friendable
Performance |
| Timeline |
| MMTEC Inc |
| Friendable |
MMTEC and Friendable Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MMTEC and Friendable
The main advantage of trading using opposite MMTEC and Friendable positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MMTEC position performs unexpectedly, Friendable 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 Friendable will offset losses from the drop in Friendable's long position.The idea behind MMTEC Inc and Friendable pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Friendable vs. RenoWorks Software | Friendable vs. LifeSpeak | Friendable vs. 01 Communique Laboratory | Friendable vs. On4 Communications |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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