Correlation Between Mullen Automotive and Origin Bancorp
Can any of the company-specific risk be diversified away by investing in both Mullen Automotive and Origin Bancorp 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 Origin Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mullen Automotive and Origin Bancorp, you can compare the effects of market volatilities on Mullen Automotive and Origin Bancorp 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 Origin Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mullen Automotive and Origin Bancorp.
Diversification Opportunities for Mullen Automotive and Origin Bancorp
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Mullen and Origin is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Mullen Automotive and Origin Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Origin Bancorp 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 Origin Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Origin Bancorp has no effect on the direction of Mullen Automotive i.e., Mullen Automotive and Origin Bancorp go up and down completely randomly.
Pair Corralation between Mullen Automotive and Origin Bancorp
If you would invest 231.00 in Mullen Automotive on August 30, 2024 and sell it today you would earn a total of 37.00 from holding Mullen Automotive or generate 16.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 4.55% |
| Values | Daily Returns |
Mullen Automotive vs. Origin Bancorp
Performance |
| Timeline |
| Mullen Automotive |
| Origin Bancorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Mullen Automotive and Origin Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mullen Automotive and Origin Bancorp
The main advantage of trading using opposite Mullen Automotive and Origin Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mullen Automotive position performs unexpectedly, Origin Bancorp 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 Origin Bancorp will offset losses from the drop in Origin Bancorp's long position.| Mullen Automotive vs. Hycroft Mining Holding | Mullen Automotive vs. Imperial Petroleum | Mullen Automotive vs. Camber Energy |
| Origin Bancorp vs. Home Federal Bancorp | Origin Bancorp vs. First Financial Northwest | Origin Bancorp vs. First Northwest Bancorp | Origin Bancorp vs. First Capital |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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