Correlation Between Moelis and GA EXpress

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

By analyzing existing cross correlation between Moelis Co and GA eXpress, you can compare the effects of market volatilities on Moelis and GA EXpress 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 Moelis with a short position of GA EXpress. Check out your portfolio center. Please also check ongoing floating volatility patterns of Moelis and GA EXpress.

Diversification Opportunities for Moelis and GA EXpress

-0.87

Correlation Coefficient

Moelis  GA EXpress

Pay attention - limited upside

The 3 months correlation between Moelis and GAEX is -0.87. Overlapping area represents the amount of risk that can be diversified away by holding Moelis Co and GA eXpress in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GA eXpress and Moelis 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 Moelis Co are associated (or correlated) with GA EXpress. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GA eXpress has no effect on the direction of Moelis i.e., Moelis and GA EXpress go up and down completely randomly.

Pair Corralation between Moelis and GA EXpress

If you would invest  7,429  in Moelis Co on October 12, 2024 and sell it today you would earn a total of  44.00  from holding Moelis Co or generate 0.59% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	95.24%
Values	Daily Returns

Moelis Co  vs.  GA eXpress

Moelis

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Moelis Co are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak fundamental indicators, Moelis may actually be approaching a critical reversion point that can send shares even higher in February 2025.

GA eXpress

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days GA eXpress has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's technical and fundamental indicators remain fairly strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Moelis and GA EXpress

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

The idea behind Moelis Co and GA eXpress 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.

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 CEOs Directory module to screen CEOs from public companies around the world.