Correlation Between PFSweb and Mader Group
Can any of the company-specific risk be diversified away by investing in both PFSweb and Mader Group 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 PFSweb and Mader Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PFSweb Inc and Mader Group Limited, you can compare the effects of market volatilities on PFSweb and Mader Group 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 PFSweb with a short position of Mader Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of PFSweb and Mader Group.
Diversification Opportunities for PFSweb and Mader Group
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between PFSweb and Mader is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding PFSweb Inc and Mader Group Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mader Group Limited and PFSweb 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 PFSweb Inc are associated (or correlated) with Mader Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mader Group Limited has no effect on the direction of PFSweb i.e., PFSweb and Mader Group go up and down completely randomly.
Pair Corralation between PFSweb and Mader Group
Given the investment horizon of 90 days PFSweb Inc is expected to under-perform the Mader Group. In addition to that, PFSweb is 1.18 times more volatile than Mader Group Limited. It trades about -0.04 of its total potential returns per unit of risk. Mader Group Limited is currently generating about 0.04 per unit of volatility. If you would invest 249.00 in Mader Group Limited on August 28, 2024 and sell it today you would earn a total of 108.00 from holding Mader Group Limited or generate 43.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 33.33% |
| Values | Daily Returns |
PFSweb Inc vs. Mader Group Limited
Performance |
| Timeline |
| PFSweb Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Mader Group Limited |
PFSweb and Mader Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PFSweb and Mader Group
The main advantage of trading using opposite PFSweb and Mader Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PFSweb position performs unexpectedly, Mader Group 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 Mader Group will offset losses from the drop in Mader Group's long position.| PFSweb vs. Network 1 Technologies | PFSweb vs. Rentokil Initial PLC | PFSweb vs. Cass Information Systems | PFSweb vs. Maximus |
| Mader Group vs. Cintas | Mader Group vs. Thomson Reuters Corp | Mader Group vs. Global Payments | Mader Group vs. RB Global |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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