Correlation Between Applovin Corp and Mcig

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

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

Diversification Opportunities for Applovin Corp and Mcig

0.04

Correlation Coefficient

Applovin Corp  Mcig

Significant diversification

The 3 months correlation between Applovin and Mcig is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Applovin Corp and Mcig Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mcig Inc and Applovin 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 Applovin Corp are associated (or correlated) with Mcig. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mcig Inc has no effect on the direction of Applovin Corp i.e., Applovin Corp and Mcig go up and down completely randomly.

Pair Corralation between Applovin Corp and Mcig

Considering the 90-day investment horizon Applovin Corp is expected to generate 0.41 times more return on investment than Mcig. However, Applovin Corp is 2.43 times less risky than Mcig. It trades about 0.01 of its potential returns per unit of risk. Mcig Inc is currently generating about -0.05 per unit of risk. If you would invest  34,059  in Applovin Corp on December 1, 2024 and sell it today you would lose (1,485) from holding Applovin Corp or give up 4.36% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	95.24%
Values	Daily Returns

Applovin Corp  vs.  Mcig Inc

Applovin Corp

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Applovin Corp are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable basic indicators, Applovin Corp is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Mcig Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Mcig Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in April 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with Applovin Corp and Mcig

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

The idea behind Applovin Corp and Mcig 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.