Correlation Between Plug Power and Mango Capital
Can any of the company-specific risk be diversified away by investing in both Plug Power and Mango Capital 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 Plug Power and Mango Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Plug Power and Mango Capital, you can compare the effects of market volatilities on Plug Power and Mango Capital 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 Plug Power with a short position of Mango Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Plug Power and Mango Capital.
Diversification Opportunities for Plug Power and Mango Capital
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Plug and Mango is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Plug Power and Mango Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mango Capital and Plug Power 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 Plug Power are associated (or correlated) with Mango Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mango Capital has no effect on the direction of Plug Power i.e., Plug Power and Mango Capital go up and down completely randomly.
Pair Corralation between Plug Power and Mango Capital
Given the investment horizon of 90 days Plug Power is expected to generate 11.32 times more return on investment than Mango Capital. However, Plug Power is 11.32 times more volatile than Mango Capital. It trades about 0.19 of its potential returns per unit of risk. Mango Capital is currently generating about 0.22 per unit of risk. If you would invest 199.00 in Plug Power on September 12, 2024 and sell it today you would earn a total of 52.00 from holding Plug Power or generate 26.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Plug Power vs. Mango Capital
Performance |
| Timeline |
| Plug Power |
| Mango Capital |
Plug Power and Mango Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Plug Power and Mango Capital
The main advantage of trading using opposite Plug Power and Mango Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Plug Power position performs unexpectedly, Mango Capital 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 Mango Capital will offset losses from the drop in Mango Capital's long position.| Plug Power vs. Energizer Holdings | Plug Power vs. Acuity Brands | Plug Power vs. Espey Mfg Electronics | Plug Power vs. Preformed Line Products |
| Mango Capital vs. Shopify | Mango Capital vs. Docebo Inc | Mango Capital vs. Unity Software | Mango Capital vs. Fastly 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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