Correlation Between MUA and MCB GROUP
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By analyzing existing cross correlation between MUA LTD and MCB GROUP LTD, you can compare the effects of market volatilities on MUA and MCB GROUP 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 MUA with a short position of MCB GROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of MUA and MCB GROUP.
Diversification Opportunities for MUA and MCB GROUP
Weak diversification
The 3 months correlation between MUA and MCB is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding MUA LTD and MCB GROUP LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MCB GROUP LTD and MUA 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 MUA LTD are associated (or correlated) with MCB GROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MCB GROUP LTD has no effect on the direction of MUA i.e., MUA and MCB GROUP go up and down completely randomly.
Pair Corralation between MUA and MCB GROUP
Assuming the 90 days trading horizon MUA LTD is expected to under-perform the MCB GROUP. But the stock apears to be less risky and, when comparing its historical volatility, MUA LTD is 3.92 times less risky than MCB GROUP. The stock trades about -0.46 of its potential returns per unit of risk. The MCB GROUP LTD is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 1,095 in MCB GROUP LTD on November 2, 2024 and sell it today you would lose (20.00) from holding MCB GROUP LTD or give up 1.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
MUA LTD vs. MCB GROUP LTD
Performance |
| Timeline |
| MUA LTD |
| MCB GROUP LTD |
MUA and MCB GROUP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MUA and MCB GROUP
The main advantage of trading using opposite MUA and MCB GROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MUA position performs unexpectedly, MCB GROUP 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 MCB GROUP will offset losses from the drop in MCB GROUP's long position.| MUA vs. FINCORP INVESTMENT LTD | MUA vs. UNIVERSAL PARTNERS LTD | MUA vs. MCB GROUP LTD | MUA vs. LOTTOTECH LTD |
| MCB GROUP vs. FINCORP INVESTMENT LTD | MCB GROUP vs. UNIVERSAL PARTNERS LTD | MCB GROUP vs. MUA LTD | MCB GROUP vs. LOTTOTECH LTD |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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