Correlation Between Mullen Automotive and Screaming Eagle
Can any of the company-specific risk be diversified away by investing in both Mullen Automotive and Screaming Eagle 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 Screaming Eagle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mullen Automotive and Screaming Eagle Acquisition, you can compare the effects of market volatilities on Mullen Automotive and Screaming Eagle 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 Screaming Eagle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mullen Automotive and Screaming Eagle.
Diversification Opportunities for Mullen Automotive and Screaming Eagle
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Mullen and Screaming is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Mullen Automotive and Screaming Eagle Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Screaming Eagle Acqu 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 Screaming Eagle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Screaming Eagle Acqu has no effect on the direction of Mullen Automotive i.e., Mullen Automotive and Screaming Eagle go up and down completely randomly.
Pair Corralation between Mullen Automotive and Screaming Eagle
If you would invest 280.00 in Mullen Automotive on August 26, 2024 and sell it today you would earn a total of 13.00 from holding Mullen Automotive or generate 4.64% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 4.55% |
Values | Daily Returns |
Mullen Automotive vs. Screaming Eagle Acquisition
Performance |
Timeline |
Mullen Automotive |
Screaming Eagle Acqu |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Mullen Automotive and Screaming Eagle Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Mullen Automotive and Screaming Eagle
The main advantage of trading using opposite Mullen Automotive and Screaming Eagle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mullen Automotive position performs unexpectedly, Screaming Eagle 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 Screaming Eagle will offset losses from the drop in Screaming Eagle'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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
Share Portfolio Track or share privately all of your investments from the convenience of any device | |
Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
Equity Valuation Check real value of public entities based on technical and fundamental data |