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
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Finexia and Mach7 is 0.26. 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 is expected to generate 4.39 times less return on investment than Mach7 Technologies. But when comparing it to its historical volatility, Finexia Financial Group is 2.13 times less risky than Mach7 Technologies. It trades about 0.01 of its potential returns per unit of risk. Mach7 Technologies is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 37.00 in Mach7 Technologies on December 29, 2024 and sell it today you would earn a total of 0.00 from holding Mach7 Technologies or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
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. Accent Resources NL | Finexia Financial vs. Hutchison Telecommunications | Finexia Financial vs. Energy Resources | Finexia Financial vs. GO2 People |
Mach7 Technologies vs. Skycity Entertainment Group | Mach7 Technologies vs. COG Financial Services | Mach7 Technologies vs. Sports Entertainment Group | Mach7 Technologies vs. ARN Media Limited |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |