Correlation Between Mullen and Pason Systems
Can any of the company-specific risk be diversified away by investing in both Mullen and Pason Systems 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 Mullen and Pason Systems into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mullen Group and Pason Systems, you can compare the effects of market volatilities on Mullen and Pason Systems 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 Mullen with a short position of Pason Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mullen and Pason Systems.
Diversification Opportunities for Mullen and Pason Systems
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Mullen and Pason is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Mullen Group and Pason Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pason Systems and Mullen 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 Mullen Group are associated (or correlated) with Pason Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pason Systems has no effect on the direction of Mullen i.e., Mullen and Pason Systems go up and down completely randomly.
Pair Corralation between Mullen and Pason Systems
Assuming the 90 days trading horizon Mullen Group is expected to generate 0.64 times more return on investment than Pason Systems. However, Mullen Group is 1.56 times less risky than Pason Systems. It trades about 0.13 of its potential returns per unit of risk. Pason Systems is currently generating about 0.0 per unit of risk. If you would invest 1,458 in Mullen Group on November 1, 2024 and sell it today you would earn a total of 43.00 from holding Mullen Group or generate 2.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mullen Group vs. Pason Systems
Performance |
| Timeline |
| Mullen Group |
| Pason Systems |
Mullen and Pason Systems Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mullen and Pason Systems
The main advantage of trading using opposite Mullen and Pason Systems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mullen position performs unexpectedly, Pason Systems 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 Pason Systems will offset losses from the drop in Pason Systems' long position.| Mullen vs. Pason Systems | Mullen vs. Westshore Terminals Investment | Mullen vs. Superior Plus Corp | Mullen vs. Gibson Energy |
| Pason Systems vs. Enerflex | Pason Systems vs. Mullen Group | Pason Systems vs. Secure Energy Services | Pason Systems vs. Ensign Energy Services |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |