Correlation Between Urbanfund Corp and Mongolia Growth
Can any of the company-specific risk be diversified away by investing in both Urbanfund Corp and Mongolia Growth 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 Urbanfund Corp and Mongolia Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Urbanfund Corp and Mongolia Growth Group, you can compare the effects of market volatilities on Urbanfund Corp and Mongolia Growth 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 Urbanfund Corp with a short position of Mongolia Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Urbanfund Corp and Mongolia Growth.
Diversification Opportunities for Urbanfund Corp and Mongolia Growth
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Urbanfund and Mongolia is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Urbanfund Corp and Mongolia Growth Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mongolia Growth Group and Urbanfund Corp 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 Urbanfund Corp are associated (or correlated) with Mongolia Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mongolia Growth Group has no effect on the direction of Urbanfund Corp i.e., Urbanfund Corp and Mongolia Growth go up and down completely randomly.
Pair Corralation between Urbanfund Corp and Mongolia Growth
Assuming the 90 days horizon Urbanfund Corp is expected to generate 1.6 times less return on investment than Mongolia Growth. In addition to that, Urbanfund Corp is 1.02 times more volatile than Mongolia Growth Group. It trades about 0.02 of its total potential returns per unit of risk. Mongolia Growth Group is currently generating about 0.03 per unit of volatility. If you would invest 110.00 in Mongolia Growth Group on August 30, 2024 and sell it today you would earn a total of 25.00 from holding Mongolia Growth Group or generate 22.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Urbanfund Corp vs. Mongolia Growth Group
Performance |
| Timeline |
| Urbanfund Corp |
| Mongolia Growth Group |
Urbanfund Corp and Mongolia Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Urbanfund Corp and Mongolia Growth
The main advantage of trading using opposite Urbanfund Corp and Mongolia Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Urbanfund Corp position performs unexpectedly, Mongolia Growth 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 Mongolia Growth will offset losses from the drop in Mongolia Growth's long position.| Urbanfund Corp vs. SmartCentres Real Estate | Urbanfund Corp vs. Dream Industrial Real | Urbanfund Corp vs. RioCan Real Estate | Urbanfund Corp vs. Algonquin Power Utilities |
| Mongolia Growth vs. Mongolia Growth Group | Mongolia Growth vs. Parkit Enterprise | Mongolia Growth vs. Inventronics | Mongolia Growth vs. Urbanfund Corp |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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