Correlation Between Ackroo and MMTEC

Can any of the company-specific risk be diversified away by investing in both Ackroo and MMTEC 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 Ackroo and MMTEC into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Ackroo Inc and MMTEC Inc, you can compare the effects of market volatilities on Ackroo and MMTEC 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 Ackroo with a short position of MMTEC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ackroo and MMTEC.

Diversification Opportunities for Ackroo and MMTEC

-0.22

Correlation Coefficient

Ackroo  MMTEC

Very good diversification

The 3 months correlation between Ackroo and MMTEC is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Ackroo Inc and MMTEC Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MMTEC Inc and Ackroo 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 Ackroo Inc are associated (or correlated) with MMTEC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MMTEC Inc has no effect on the direction of Ackroo i.e., Ackroo and MMTEC go up and down completely randomly.

Pair Corralation between Ackroo and MMTEC

Assuming the 90 days horizon Ackroo Inc is expected to generate 0.39 times more return on investment than MMTEC. However, Ackroo Inc is 2.59 times less risky than MMTEC. It trades about 0.02 of its potential returns per unit of risk. MMTEC Inc is currently generating about -0.1 per unit of risk. If you would invest  9.89  in Ackroo Inc on December 19, 2024 and sell it today you would earn a total of  0.11  from holding Ackroo Inc or generate 1.11% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	93.75%
Values	Daily Returns

Ackroo Inc  vs.  MMTEC Inc

Ackroo Inc

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Ackroo Inc are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable technical and fundamental indicators, Ackroo is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

MMTEC Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days MMTEC Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with Ackroo and MMTEC

The main advantage of trading using opposite Ackroo and MMTEC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ackroo position performs unexpectedly, MMTEC 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 MMTEC will offset losses from the drop in MMTEC's long position.

The idea behind Ackroo Inc and MMTEC Inc pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.