Correlation Between Finexia Financial and Mach7 Technologies
Can any of the company-specific risk be diversified away by investing in both Finexia Financial and Mach7 Technologies 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 Finexia Financial and Mach7 Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Finexia Financial Group and Mach7 Technologies, you can compare the effects of market volatilities on Finexia Financial and Mach7 Technologies 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 Finexia Financial with a short position of Mach7 Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Finexia Financial and Mach7 Technologies.
Diversification Opportunities for Finexia Financial and Mach7 Technologies
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Finexia and Mach7 is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Finexia Financial Group and Mach7 Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mach7 Technologies and Finexia Financial 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 Finexia Financial Group are associated (or correlated) with Mach7 Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mach7 Technologies has no effect on the direction of Finexia Financial i.e., Finexia Financial and Mach7 Technologies go up and down completely randomly.
Pair Corralation between Finexia Financial and Mach7 Technologies
Assuming the 90 days trading horizon Finexia Financial Group is expected to under-perform the Mach7 Technologies. But the stock apears to be less risky and, when comparing its historical volatility, Finexia Financial Group is 1.6 times less risky than Mach7 Technologies. The stock trades about -0.04 of its potential returns per unit of risk. The Mach7 Technologies is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 36.00 in Mach7 Technologies on December 3, 2024 and sell it today you would earn a total of 9.00 from holding Mach7 Technologies or generate 25.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 98.39% |
Values | Daily Returns |
Finexia Financial Group vs. Mach7 Technologies
Performance |
Timeline |
Finexia Financial |
Mach7 Technologies |
Finexia Financial and Mach7 Technologies Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Finexia Financial and Mach7 Technologies
The main advantage of trading using opposite Finexia Financial and Mach7 Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Finexia Financial position performs unexpectedly, Mach7 Technologies 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 Mach7 Technologies will offset losses from the drop in Mach7 Technologies' long position.Finexia Financial vs. Data3 | Finexia Financial vs. Computershare | Finexia Financial vs. Healthco Healthcare and | Finexia Financial vs. EVE Health Group |
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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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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