Correlation Between Martin Currie and StockSnips

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

By analyzing existing cross correlation between Martin Currie Sustainable and StockSnips AI Powered Sentiment, you can compare the effects of market volatilities on Martin Currie and StockSnips 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 Martin Currie with a short position of StockSnips. Check out your portfolio center. Please also check ongoing floating volatility patterns of Martin Currie and StockSnips.

Diversification Opportunities for Martin Currie and StockSnips

0.0

Correlation Coefficient

Martin Currie  StockSnips

Pay attention - limited upside

The 3 months correlation between Martin and StockSnips is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Martin Currie Sustainable and StockSnips AI Powered Sentimen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on StockSnips AI Powered and Martin Currie 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 Martin Currie Sustainable are associated (or correlated) with StockSnips. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of StockSnips AI Powered has no effect on the direction of Martin Currie i.e., Martin Currie and StockSnips go up and down completely randomly.

Pair Corralation between Martin Currie and StockSnips

If you would invest  0.00  in Martin Currie Sustainable on December 30, 2024 and sell it today you would earn a total of  0.00  from holding Martin Currie Sustainable or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.61%
Values	Daily Returns

Martin Currie Sustainable  vs.  StockSnips AI Powered Sentimen

Martin Currie Sustainable

Risk-Adjusted Performance

Weak

Over the last 90 days Martin Currie Sustainable has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Martin Currie is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

StockSnips AI Powered

Risk-Adjusted Performance

Very Weak

Over the last 90 days StockSnips AI Powered Sentiment has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, StockSnips is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Martin Currie and StockSnips

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

The idea behind Martin Currie Sustainable and StockSnips AI Powered Sentiment 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.