Correlation Between Hurco Companies and MF International

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

By analyzing existing cross correlation between Hurco Companies and mF International Limited, you can compare the effects of market volatilities on Hurco Companies and MF International 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 Hurco Companies with a short position of MF International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hurco Companies and MF International.

Diversification Opportunities for Hurco Companies and MF International

0.23

Correlation Coefficient

Hurco Companies  MF International

Modest diversification

The 3 months correlation between Hurco and MFI is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Hurco Companies and mF International Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on mF International and Hurco Companies 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 Hurco Companies are associated (or correlated) with MF International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of mF International has no effect on the direction of Hurco Companies i.e., Hurco Companies and MF International go up and down completely randomly.

Pair Corralation between Hurco Companies and MF International

Given the investment horizon of 90 days Hurco Companies is expected to generate 0.24 times more return on investment than MF International. However, Hurco Companies is 4.25 times less risky than MF International. It trades about -0.01 of its potential returns per unit of risk. mF International Limited is currently generating about -0.1 per unit of risk. If you would invest  2,427  in Hurco Companies on September 18, 2024 and sell it today you would lose (517.00) from holding Hurco Companies or give up 21.3% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	33.54%
Values	Daily Returns

Hurco Companies  vs.  mF International Limited

Hurco Companies

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Hurco Companies are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, Hurco Companies is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

mF International

Risk-Adjusted Performance

2 of 100

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in mF International Limited are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite fairly unsteady technical and fundamental indicators, MF International may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Hurco Companies and MF International

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

The idea behind Hurco Companies and mF International Limited 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.