Correlation Between Weibo Corp and MMA Offshore
Can any of the company-specific risk be diversified away by investing in both Weibo Corp and MMA Offshore 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 Weibo Corp and MMA Offshore into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Weibo Corp and MMA Offshore Limited, you can compare the effects of market volatilities on Weibo Corp and MMA Offshore 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 Weibo Corp with a short position of MMA Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Weibo Corp and MMA Offshore.
Diversification Opportunities for Weibo Corp and MMA Offshore
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Weibo and MMA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Weibo Corp and MMA Offshore Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MMA Offshore Limited and Weibo 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 Weibo Corp are associated (or correlated) with MMA Offshore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MMA Offshore Limited has no effect on the direction of Weibo Corp i.e., Weibo Corp and MMA Offshore go up and down completely randomly.
Pair Corralation between Weibo Corp and MMA Offshore
Allowing for the 90-day total investment horizon Weibo Corp is expected to generate 192.82 times less return on investment than MMA Offshore. But when comparing it to its historical volatility, Weibo Corp is 19.94 times less risky than MMA Offshore. It trades about 0.01 of its potential returns per unit of risk. MMA Offshore Limited is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 16.00 in MMA Offshore Limited on September 14, 2024 and sell it today you would earn a total of 134.00 from holding MMA Offshore Limited or generate 837.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 63.57% |
| Values | Daily Returns |
Weibo Corp vs. MMA Offshore Limited
Performance |
| Timeline |
| Weibo Corp |
| MMA Offshore Limited |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Weibo Corp and MMA Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Weibo Corp and MMA Offshore
The main advantage of trading using opposite Weibo Corp and MMA Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Weibo Corp position performs unexpectedly, MMA Offshore 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 MMA Offshore will offset losses from the drop in MMA Offshore's long position.| Weibo Corp vs. YY Inc Class | Weibo Corp vs. DouYu International Holdings | Weibo Corp vs. Tencent Music Entertainment | Weibo Corp vs. Autohome |
| MMA Offshore vs. Weibo Corp | MMA Offshore vs. HF Sinclair Corp | MMA Offshore vs. Mesa Air Group | MMA Offshore vs. Sphere Entertainment Co |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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