Correlation Between Multi Ways and HyreCar
Can any of the company-specific risk be diversified away by investing in both Multi Ways and HyreCar 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 HyreCar 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 HyreCar, you can compare the effects of market volatilities on Multi Ways and HyreCar 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 HyreCar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Multi Ways and HyreCar.
Diversification Opportunities for Multi Ways and HyreCar
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Multi and HyreCar is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Multi Ways Holdings and HyreCar in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HyreCar 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 HyreCar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HyreCar has no effect on the direction of Multi Ways i.e., Multi Ways and HyreCar go up and down completely randomly.
Pair Corralation between Multi Ways and HyreCar
Considering the 90-day investment horizon Multi Ways Holdings is expected to generate 0.56 times more return on investment than HyreCar. However, Multi Ways Holdings is 1.79 times less risky than HyreCar. It trades about -0.08 of its potential returns per unit of risk. HyreCar is currently generating about -0.13 per unit of risk. If you would invest 46.00 in Multi Ways Holdings on September 2, 2024 and sell it today you would lose (19.00) from holding Multi Ways Holdings or give up 41.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 98.44% |
| Values | Daily Returns |
Multi Ways Holdings vs. HyreCar
Performance |
| Timeline |
| Multi Ways Holdings |
| HyreCar |
Multi Ways and HyreCar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Multi Ways and HyreCar
The main advantage of trading using opposite Multi Ways and HyreCar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Multi Ways position performs unexpectedly, HyreCar 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 HyreCar will offset losses from the drop in HyreCar's long position.| Multi Ways vs. FlexShopper | Multi Ways vs. Hertz Global Holdings | Multi Ways vs. HyreCar | Multi Ways vs. Avis Budget Group |
| HyreCar vs. National Vision Holdings | HyreCar vs. Century Aluminum | HyreCar vs. Asbury Automotive Group | HyreCar vs. Valvoline |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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