Correlation Between Mullen Automotive and First Keystone
Can any of the company-specific risk be diversified away by investing in both Mullen Automotive and First Keystone 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 First Keystone into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mullen Automotive and First Keystone Corp, you can compare the effects of market volatilities on Mullen Automotive and First Keystone 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 First Keystone. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mullen Automotive and First Keystone.
Diversification Opportunities for Mullen Automotive and First Keystone
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mullen and First is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Mullen Automotive and First Keystone Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Keystone Corp 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 First Keystone. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Keystone Corp has no effect on the direction of Mullen Automotive i.e., Mullen Automotive and First Keystone go up and down completely randomly.
Pair Corralation between Mullen Automotive and First Keystone
Given the investment horizon of 90 days Mullen Automotive is expected to generate 3.96 times more return on investment than First Keystone. However, Mullen Automotive is 3.96 times more volatile than First Keystone Corp. It trades about 0.14 of its potential returns per unit of risk. First Keystone Corp is currently generating about 0.37 per unit of risk. If you would invest 205.00 in Mullen Automotive on September 1, 2024 and sell it today you would earn a total of 64.00 from holding Mullen Automotive or generate 31.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mullen Automotive vs. First Keystone Corp
Performance |
| Timeline |
| Mullen Automotive |
| First Keystone Corp |
Mullen Automotive and First Keystone Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mullen Automotive and First Keystone
The main advantage of trading using opposite Mullen Automotive and First Keystone positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mullen Automotive position performs unexpectedly, First Keystone 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 First Keystone will offset losses from the drop in First Keystone's long position.| Mullen Automotive vs. Hycroft Mining Holding | Mullen Automotive vs. Imperial Petroleum | Mullen Automotive vs. Camber Energy |
| First Keystone vs. HUMANA INC | First Keystone vs. SCOR PK | First Keystone vs. Aquagold International | First Keystone vs. Thrivent High Yield |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |