Correlation Between Ora Banda and MA Financial
Can any of the company-specific risk be diversified away by investing in both Ora Banda and MA 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 Ora Banda and MA Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ora Banda Mining and MA Financial Group, you can compare the effects of market volatilities on Ora Banda and MA 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 Ora Banda with a short position of MA Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ora Banda and MA Financial.
Diversification Opportunities for Ora Banda and MA Financial
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ora and MAF is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Ora Banda Mining and MA Financial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MA Financial Group and Ora Banda 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 Ora Banda Mining are associated (or correlated) with MA Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MA Financial Group has no effect on the direction of Ora Banda i.e., Ora Banda and MA Financial go up and down completely randomly.
Pair Corralation between Ora Banda and MA Financial
Assuming the 90 days trading horizon Ora Banda Mining is expected to generate 2.13 times more return on investment than MA Financial. However, Ora Banda is 2.13 times more volatile than MA Financial Group. It trades about 0.12 of its potential returns per unit of risk. MA Financial Group is currently generating about 0.04 per unit of risk. If you would invest 7.00 in Ora Banda Mining on September 2, 2024 and sell it today you would earn a total of 66.00 from holding Ora Banda Mining or generate 942.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ora Banda Mining vs. MA Financial Group
Performance |
| Timeline |
| Ora Banda Mining |
| MA Financial Group |
Ora Banda and MA Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ora Banda and MA Financial
The main advantage of trading using opposite Ora Banda and MA Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ora Banda position performs unexpectedly, MA 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 MA Financial will offset losses from the drop in MA Financial's long position.| Ora Banda vs. Northern Star Resources | Ora Banda vs. Evolution Mining | Ora Banda vs. Sandfire Resources NL | Ora Banda vs. Aneka Tambang Tbk |
| MA Financial vs. Inventis | MA Financial vs. Pengana Private Equity | MA Financial vs. PM Capital Global | MA Financial vs. Macquarie Group Ltd |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |