Correlation Between Safety Shot and MFA Financial
Can any of the company-specific risk be diversified away by investing in both Safety Shot and MFA 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 Safety Shot and MFA Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Safety Shot and MFA Financial SR, you can compare the effects of market volatilities on Safety Shot and MFA 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 Safety Shot with a short position of MFA Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Safety Shot and MFA Financial.
Diversification Opportunities for Safety Shot and MFA Financial
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Safety and MFA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Safety Shot and MFA Financial SR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MFA Financial SR and Safety Shot 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 Safety Shot are associated (or correlated) with MFA Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MFA Financial SR has no effect on the direction of Safety Shot i.e., Safety Shot and MFA Financial go up and down completely randomly.
Pair Corralation between Safety Shot and MFA Financial
If you would invest (100.00) in MFA Financial SR on October 28, 2024 and sell it today you would earn a total of 100.00 from holding MFA Financial SR or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Safety Shot vs. MFA Financial SR
Performance |
| Timeline |
| Safety Shot |
| MFA Financial SR |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Safety Shot and MFA Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Safety Shot and MFA Financial
The main advantage of trading using opposite Safety Shot and MFA Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Safety Shot position performs unexpectedly, MFA 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 MFA Financial will offset losses from the drop in MFA Financial's long position.| Safety Shot vs. Vindicator Silver Lead Mining | Safety Shot vs. International Consolidated Airlines | Safety Shot vs. LATAM Airlines Group | Safety Shot vs. Summa Silver Corp |
| MFA Financial vs. Tradeweb Markets | MFA Financial vs. Lithia Motors | MFA Financial vs. The Gap, | MFA Financial vs. MYT Netherlands Parent |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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