Correlation Between Mutual Of and X Financial
Can any of the company-specific risk be diversified away by investing in both Mutual Of and X Financial 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 Mutual Of and X Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mutual Of America and X Financial Class, you can compare the effects of market volatilities on Mutual Of and X Financial 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 Mutual Of with a short position of X Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mutual Of and X Financial.
Diversification Opportunities for Mutual Of and X Financial
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mutual and XYF is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Mutual Of America and X Financial Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on X Financial Class and Mutual Of 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 Mutual Of America are associated (or correlated) with X Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of X Financial Class has no effect on the direction of Mutual Of i.e., Mutual Of and X Financial go up and down completely randomly.
Pair Corralation between Mutual Of and X Financial
Assuming the 90 days horizon Mutual Of America is expected to generate 0.25 times more return on investment than X Financial. However, Mutual Of America is 4.08 times less risky than X Financial. It trades about 0.09 of its potential returns per unit of risk. X Financial Class is currently generating about -0.17 per unit of risk. If you would invest 1,392 in Mutual Of America on August 24, 2024 and sell it today you would earn a total of 12.00 from holding Mutual Of America or generate 0.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mutual Of America vs. X Financial Class
Performance |
| Timeline |
| Mutual Of America |
| X Financial Class |
Mutual Of and X Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mutual Of and X Financial
The main advantage of trading using opposite Mutual Of and X Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mutual Of position performs unexpectedly, X Financial 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 X Financial will offset losses from the drop in X Financial's long position.| Mutual Of vs. Vanguard Target Retirement | Mutual Of vs. ABIVAX Socit Anonyme | Mutual Of vs. SCOR PK | Mutual Of vs. HUMANA INC |
| X Financial vs. Small Cap Core | X Financial vs. Morningstar Unconstrained Allocation | X Financial vs. Mutual Of America | X Financial vs. Ep Emerging Markets |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Commodity Directory Find actively traded commodities issued by global exchanges |