Correlation Between AfriTin Mining and MT Bank

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

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

Diversification Opportunities for AfriTin Mining and MT Bank

-0.79

Correlation Coefficient

AfriTin Mining  MT Bank

Pay attention - limited upside

The 3 months correlation between AfriTin and 0JW2 is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding AfriTin Mining and MT Bank Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MT Bank Corp and AfriTin Mining 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 AfriTin Mining are associated (or correlated) with MT Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MT Bank Corp has no effect on the direction of AfriTin Mining i.e., AfriTin Mining and MT Bank go up and down completely randomly.

Pair Corralation between AfriTin Mining and MT Bank

Assuming the 90 days trading horizon AfriTin Mining is expected to generate 5.09 times more return on investment than MT Bank. However, AfriTin Mining is 5.09 times more volatile than MT Bank Corp. It trades about 0.14 of its potential returns per unit of risk. MT Bank Corp is currently generating about -0.07 per unit of risk. If you would invest  212.00  in AfriTin Mining on December 30, 2024 and sell it today you would earn a total of  136.00  from holding AfriTin Mining or generate 64.15% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	92.31%
Values	Daily Returns

AfriTin Mining  vs.  MT Bank Corp

AfriTin Mining

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in AfriTin Mining are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady technical and fundamental indicators, AfriTin Mining exhibited solid returns over the last few months and may actually be approaching a breakup point.

MT Bank Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days MT Bank Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with AfriTin Mining and MT Bank

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

The idea behind AfriTin Mining and MT Bank Corp 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.