Correlation Between FMC and Moneygram Int

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

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

Diversification Opportunities for FMC and Moneygram Int

-0.47

Correlation Coefficient

FMC  Moneygram Int

Very good diversification

The 3 months correlation between FMC and Moneygram is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding FMC Corp. and Moneygram Int in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Moneygram Int and FMC 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 FMC Corporation are associated (or correlated) with Moneygram Int. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Moneygram Int has no effect on the direction of FMC i.e., FMC and Moneygram Int go up and down completely randomly.

Pair Corralation between FMC and Moneygram Int

If you would invest  1,099  in Moneygram Int on October 20, 2024 and sell it today you would earn a total of  0.00  from holding Moneygram Int or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	0.79%
Values	Daily Returns

FMC Corp.  vs.  Moneygram Int

FMC Corporation

Risk-Adjusted Performance

0 of 100

Very Weak

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

Moneygram Int

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Moneygram Int has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong technical and fundamental indicators, Moneygram Int is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with FMC and Moneygram Int

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

The idea behind FMC Corporation and Moneygram Int 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.

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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.