Correlation Between Maven Wireless and White Pearl

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

By analyzing existing cross correlation between Maven Wireless Sweden and White Pearl Technology, you can compare the effects of market volatilities on Maven Wireless and White Pearl 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 Maven Wireless with a short position of White Pearl. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maven Wireless and White Pearl.

Diversification Opportunities for Maven Wireless and White Pearl

-0.84

Correlation Coefficient

Maven Wireless  White Pearl

Pay attention - limited upside

The 3 months correlation between Maven and White is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Maven Wireless Sweden and White Pearl Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on White Pearl Technology and Maven Wireless 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 Maven Wireless Sweden are associated (or correlated) with White Pearl. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of White Pearl Technology has no effect on the direction of Maven Wireless i.e., Maven Wireless and White Pearl go up and down completely randomly.

Pair Corralation between Maven Wireless and White Pearl

Assuming the 90 days trading horizon Maven Wireless is expected to generate 2.11 times less return on investment than White Pearl. In addition to that, Maven Wireless is 1.17 times more volatile than White Pearl Technology. It trades about 0.2 of its total potential returns per unit of risk. White Pearl Technology is currently generating about 0.5 per unit of volatility. If you would invest  574.00  in White Pearl Technology on October 12, 2024 and sell it today you would earn a total of  136.00  from holding White Pearl Technology or generate 23.69% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Maven Wireless Sweden  vs.  White Pearl Technology

Maven Wireless Sweden

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Maven Wireless Sweden has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in February 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

White Pearl Technology

Risk-Adjusted Performance

22 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in White Pearl Technology are ranked lower than 22 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain basic indicators, White Pearl sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Maven Wireless and White Pearl

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

The idea behind Maven Wireless Sweden and White Pearl Technology 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.