Correlation Between Multi Ways and Bird Global
Can any of the company-specific risk be diversified away by investing in both Multi Ways and Bird Global 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 Multi Ways and Bird Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Multi Ways Holdings and Bird Global, you can compare the effects of market volatilities on Multi Ways and Bird Global 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 Multi Ways with a short position of Bird Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Multi Ways and Bird Global.
Diversification Opportunities for Multi Ways and Bird Global
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Multi and Bird is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Multi Ways Holdings and Bird Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bird Global and Multi Ways 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 Multi Ways Holdings are associated (or correlated) with Bird Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bird Global has no effect on the direction of Multi Ways i.e., Multi Ways and Bird Global go up and down completely randomly.
Pair Corralation between Multi Ways and Bird Global
Considering the 90-day investment horizon Multi Ways Holdings is expected to under-perform the Bird Global. In addition to that, Multi Ways is 1.04 times more volatile than Bird Global. It trades about -0.04 of its total potential returns per unit of risk. Bird Global is currently generating about -0.02 per unit of volatility. If you would invest 516.00 in Bird Global on August 30, 2024 and sell it today you would lose (288.00) from holding Bird Global or give up 55.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 37.08% |
| Values | Daily Returns |
Multi Ways Holdings vs. Bird Global
Performance |
| Timeline |
| Multi Ways Holdings |
| Bird Global |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Multi Ways and Bird Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Multi Ways and Bird Global
The main advantage of trading using opposite Multi Ways and Bird Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Multi Ways position performs unexpectedly, Bird Global 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 Bird Global will offset losses from the drop in Bird Global's long position.| Multi Ways vs. FlexShopper | Multi Ways vs. Hertz Global Holdings | Multi Ways vs. HyreCar | Multi Ways vs. Avis Budget Group |
| Bird Global vs. FlexShopper | Bird Global vs. AZN Capital Corp | Bird Global vs. Fortress Transportation and | Bird Global vs. Ashtead Gro |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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