Correlation Between Full Truck and Mitek Systems
Can any of the company-specific risk be diversified away by investing in both Full Truck and Mitek Systems 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 Full Truck and Mitek Systems into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Full Truck Alliance and Mitek Systems, you can compare the effects of market volatilities on Full Truck and Mitek Systems 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 Full Truck with a short position of Mitek Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of Full Truck and Mitek Systems.
Diversification Opportunities for Full Truck and Mitek Systems
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Full and Mitek is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Full Truck Alliance and Mitek Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mitek Systems and Full Truck 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 Full Truck Alliance are associated (or correlated) with Mitek Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mitek Systems has no effect on the direction of Full Truck i.e., Full Truck and Mitek Systems go up and down completely randomly.
Pair Corralation between Full Truck and Mitek Systems
Considering the 90-day investment horizon Full Truck Alliance is expected to generate 0.87 times more return on investment than Mitek Systems. However, Full Truck Alliance is 1.15 times less risky than Mitek Systems. It trades about 0.05 of its potential returns per unit of risk. Mitek Systems is currently generating about -0.03 per unit of risk. If you would invest 1,135 in Full Truck Alliance on November 28, 2024 and sell it today you would earn a total of 24.00 from holding Full Truck Alliance or generate 2.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Full Truck Alliance vs. Mitek Systems
Performance |
| Timeline |
| Full Truck Alliance |
| Mitek Systems |
Full Truck and Mitek Systems Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Full Truck and Mitek Systems
The main advantage of trading using opposite Full Truck and Mitek Systems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Full Truck position performs unexpectedly, Mitek Systems 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 Mitek Systems will offset losses from the drop in Mitek Systems' long position.| Full Truck vs. Domo Inc | Full Truck vs. Oblong Inc | Full Truck vs. Kingsoft Cloud Holdings | Full Truck vs. ePlus inc |
| Mitek Systems vs. Wag Group Co | Mitek Systems vs. OppFi Inc | Mitek Systems vs. Riskified | Mitek Systems vs. Domo 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |