Correlation Between Mullen Automotive and Ace Global
Can any of the company-specific risk be diversified away by investing in both Mullen Automotive and Ace Global 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 Automotive and Ace Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mullen Automotive and Ace Global Business, you can compare the effects of market volatilities on Mullen Automotive and Ace Global 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 Automotive with a short position of Ace Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mullen Automotive and Ace Global.
Diversification Opportunities for Mullen Automotive and Ace Global
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Mullen and Ace is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Mullen Automotive and Ace Global Business in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ace Global Business and Mullen Automotive 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 Automotive are associated (or correlated) with Ace Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ace Global Business has no effect on the direction of Mullen Automotive i.e., Mullen Automotive and Ace Global go up and down completely randomly.
Pair Corralation between Mullen Automotive and Ace Global
If you would invest 315.00 in Mullen Automotive on August 31, 2024 and sell it today you would lose (47.00) from holding Mullen Automotive or give up 14.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 2.27% |
| Values | Daily Returns |
Mullen Automotive vs. Ace Global Business
Performance |
| Timeline |
| Mullen Automotive |
| Ace Global Business |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Mullen Automotive and Ace Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mullen Automotive and Ace Global
The main advantage of trading using opposite Mullen Automotive and Ace Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mullen Automotive position performs unexpectedly, Ace Global 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 Ace Global will offset losses from the drop in Ace Global's long position.| Mullen Automotive vs. Hycroft Mining Holding | Mullen Automotive vs. Imperial Petroleum | Mullen Automotive vs. Camber Energy |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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