Correlation Between Made Tech and Taylor Maritime
Can any of the company-specific risk be diversified away by investing in both Made Tech and Taylor Maritime 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 Made Tech and Taylor Maritime into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Made Tech Group and Taylor Maritime Investments, you can compare the effects of market volatilities on Made Tech and Taylor Maritime 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 Made Tech with a short position of Taylor Maritime. Check out your portfolio center. Please also check ongoing floating volatility patterns of Made Tech and Taylor Maritime.
Diversification Opportunities for Made Tech and Taylor Maritime
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Made and Taylor is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Made Tech Group and Taylor Maritime Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Taylor Maritime Inve and Made Tech 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 Made Tech Group are associated (or correlated) with Taylor Maritime. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Taylor Maritime Inve has no effect on the direction of Made Tech i.e., Made Tech and Taylor Maritime go up and down completely randomly.
Pair Corralation between Made Tech and Taylor Maritime
Assuming the 90 days trading horizon Made Tech Group is expected to generate 1.78 times more return on investment than Taylor Maritime. However, Made Tech is 1.78 times more volatile than Taylor Maritime Investments. It trades about 0.2 of its potential returns per unit of risk. Taylor Maritime Investments is currently generating about 0.21 per unit of risk. If you would invest 2,225 in Made Tech Group on October 12, 2024 and sell it today you would earn a total of 250.00 from holding Made Tech Group or generate 11.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Made Tech Group vs. Taylor Maritime Investments
Performance |
| Timeline |
| Made Tech Group |
| Taylor Maritime Inve |
Made Tech and Taylor Maritime Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Made Tech and Taylor Maritime
The main advantage of trading using opposite Made Tech and Taylor Maritime positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Made Tech position performs unexpectedly, Taylor Maritime 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 Taylor Maritime will offset losses from the drop in Taylor Maritime's long position.| Made Tech vs. JD Sports Fashion | Made Tech vs. Blackstone Loan Financing | Made Tech vs. Martin Marietta Materials | Made Tech vs. alstria office REIT AG |
| Taylor Maritime vs. Micron Technology | Taylor Maritime vs. Synchrony Financial | Taylor Maritime vs. Sydbank | Taylor Maritime vs. Made Tech Group |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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