Correlation Between MW Trade and Logintrade
Can any of the company-specific risk be diversified away by investing in both MW Trade and Logintrade 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 MW Trade and Logintrade into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MW Trade SA and Logintrade SA, you can compare the effects of market volatilities on MW Trade and Logintrade 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 MW Trade with a short position of Logintrade. Check out your portfolio center. Please also check ongoing floating volatility patterns of MW Trade and Logintrade.
Diversification Opportunities for MW Trade and Logintrade
-0.86 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MWT and Logintrade is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding MW Trade SA and Logintrade SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Logintrade SA and MW Trade 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 MW Trade SA are associated (or correlated) with Logintrade. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Logintrade SA has no effect on the direction of MW Trade i.e., MW Trade and Logintrade go up and down completely randomly.
Pair Corralation between MW Trade and Logintrade
Assuming the 90 days trading horizon MW Trade SA is expected to generate 0.69 times more return on investment than Logintrade. However, MW Trade SA is 1.45 times less risky than Logintrade. It trades about 0.22 of its potential returns per unit of risk. Logintrade SA is currently generating about 0.05 per unit of risk. If you would invest 310.00 in MW Trade SA on October 25, 2024 and sell it today you would earn a total of 48.00 from holding MW Trade SA or generate 15.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 62.5% |
| Values | Daily Returns |
MW Trade SA vs. Logintrade SA
Performance |
| Timeline |
| MW Trade SA |
| Logintrade SA |
MW Trade and Logintrade Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MW Trade and Logintrade
The main advantage of trading using opposite MW Trade and Logintrade positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MW Trade position performs unexpectedly, Logintrade 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 Logintrade will offset losses from the drop in Logintrade's long position.| MW Trade vs. M Food SA | MW Trade vs. Echo Investment SA | MW Trade vs. Skyline Investment SA | MW Trade vs. PMPG Polskie Media |
| Logintrade vs. MW Trade SA | Logintrade vs. X Trade Brokers | Logintrade vs. Road Studio SA | Logintrade vs. GreenX Metals |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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