Correlation Between Mader Group and PFMT Old
Can any of the company-specific risk be diversified away by investing in both Mader Group and PFMT Old 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 Mader Group and PFMT Old into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mader Group Limited and PFMT Old, you can compare the effects of market volatilities on Mader Group and PFMT Old 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 Mader Group with a short position of PFMT Old. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mader Group and PFMT Old.
Diversification Opportunities for Mader Group and PFMT Old
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Mader and PFMT is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Mader Group Limited and PFMT Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PFMT Old and Mader Group 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 Mader Group Limited are associated (or correlated) with PFMT Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PFMT Old has no effect on the direction of Mader Group i.e., Mader Group and PFMT Old go up and down completely randomly.
Pair Corralation between Mader Group and PFMT Old
If you would invest 355.00 in Mader Group Limited on December 30, 2024 and sell it today you would earn a total of 45.00 from holding Mader Group Limited or generate 12.68% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Mader Group Limited vs. PFMT Old
Performance |
Timeline |
Mader Group Limited |
PFMT Old |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Mader Group and PFMT Old Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Mader Group and PFMT Old
The main advantage of trading using opposite Mader Group and PFMT Old positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mader Group position performs unexpectedly, PFMT Old 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 PFMT Old will offset losses from the drop in PFMT Old's long position.Mader Group vs. Ark Restaurants Corp | Mader Group vs. British American Tobacco | Mader Group vs. Oasis Hotel Resort | Mader Group vs. Turning Point Brands |
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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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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