Correlation Between Mullen Automotive and Mapletree Logistics
Can any of the company-specific risk be diversified away by investing in both Mullen Automotive and Mapletree Logistics 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 Mapletree Logistics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mullen Automotive and Mapletree Logistics Trust, you can compare the effects of market volatilities on Mullen Automotive and Mapletree Logistics 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 Mapletree Logistics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mullen Automotive and Mapletree Logistics.
Diversification Opportunities for Mullen Automotive and Mapletree Logistics
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mullen and Mapletree is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Mullen Automotive and Mapletree Logistics Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mapletree Logistics Trust 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 Mapletree Logistics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mapletree Logistics Trust has no effect on the direction of Mullen Automotive i.e., Mullen Automotive and Mapletree Logistics go up and down completely randomly.
Pair Corralation between Mullen Automotive and Mapletree Logistics
Given the investment horizon of 90 days Mullen Automotive is expected to under-perform the Mapletree Logistics. In addition to that, Mullen Automotive is 3.59 times more volatile than Mapletree Logistics Trust. It trades about -0.28 of its total potential returns per unit of risk. Mapletree Logistics Trust is currently generating about 0.02 per unit of volatility. If you would invest 101.00 in Mapletree Logistics Trust on August 29, 2024 and sell it today you would earn a total of 0.00 from holding Mapletree Logistics Trust or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.62% |
| Values | Daily Returns |
Mullen Automotive vs. Mapletree Logistics Trust
Performance |
| Timeline |
| Mullen Automotive |
| Mapletree Logistics Trust |
Mullen Automotive and Mapletree Logistics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mullen Automotive and Mapletree Logistics
The main advantage of trading using opposite Mullen Automotive and Mapletree Logistics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mullen Automotive position performs unexpectedly, Mapletree Logistics 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 Mapletree Logistics will offset losses from the drop in Mapletree Logistics' long position.| Mullen Automotive vs. Hycroft Mining Holding | Mullen Automotive vs. Imperial Petroleum | Mullen Automotive vs. Camber Energy |
| Mapletree Logistics vs. CapitaLand Investment Limited | Mapletree Logistics vs. Cumberland Pharmaceuticals | Mapletree Logistics vs. Comstock Holding Companies | Mapletree Logistics vs. Viemed Healthcare |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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