Correlation Between Wag Group and Mitek Systems
Can any of the company-specific risk be diversified away by investing in both Wag Group and Mitek Systems 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 Wag Group and Mitek Systems into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wag Group Co and Mitek Systems, you can compare the effects of market volatilities on Wag Group and Mitek Systems 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 Wag Group with a short position of Mitek Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wag Group and Mitek Systems.
Diversification Opportunities for Wag Group and Mitek Systems
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Wag and Mitek is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Wag Group Co and Mitek Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mitek Systems and Wag Group 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 Wag Group Co are associated (or correlated) with Mitek Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mitek Systems has no effect on the direction of Wag Group i.e., Wag Group and Mitek Systems go up and down completely randomly.
Pair Corralation between Wag Group and Mitek Systems
Considering the 90-day investment horizon Wag Group Co is expected to under-perform the Mitek Systems. In addition to that, Wag Group is 2.18 times more volatile than Mitek Systems. It trades about -0.07 of its total potential returns per unit of risk. Mitek Systems is currently generating about -0.01 per unit of volatility. If you would invest 1,264 in Mitek Systems on November 3, 2024 and sell it today you would lose (244.00) from holding Mitek Systems or give up 19.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Wag Group Co vs. Mitek Systems
Performance |
| Timeline |
| Wag Group |
| Mitek Systems |
Wag Group and Mitek Systems Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wag Group and Mitek Systems
The main advantage of trading using opposite Wag Group and Mitek Systems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wag Group position performs unexpectedly, Mitek Systems 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 Mitek Systems will offset losses from the drop in Mitek Systems' long position.| Wag Group vs. ePlus inc | Wag Group vs. Progress Software | Wag Group vs. Agilysys | Wag Group vs. Sapiens International |
| Mitek Systems vs. Wag Group Co | Mitek Systems vs. OppFi Inc | Mitek Systems vs. Riskified | Mitek Systems vs. Domo Inc |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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