Correlation Between MC Mining and AH Vest

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

By analyzing existing cross correlation between MC Mining and AH Vest Limited, you can compare the effects of market volatilities on MC Mining and AH Vest 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 MC Mining with a short position of AH Vest. Check out your portfolio center. Please also check ongoing floating volatility patterns of MC Mining and AH Vest.

Diversification Opportunities for MC Mining and AH Vest

-0.68

Correlation Coefficient

MC Mining  AH Vest

Excellent diversification

The 3 months correlation between MCZ and AHL is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding MC Mining and AH Vest Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AH Vest Limited and MC Mining 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 MC Mining are associated (or correlated) with AH Vest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AH Vest Limited has no effect on the direction of MC Mining i.e., MC Mining and AH Vest go up and down completely randomly.

Pair Corralation between MC Mining and AH Vest

Assuming the 90 days trading horizon MC Mining is expected to under-perform the AH Vest. In addition to that, MC Mining is 8.57 times more volatile than AH Vest Limited. It trades about -0.04 of its total potential returns per unit of risk. AH Vest Limited is currently generating about 0.13 per unit of volatility. If you would invest  1,300  in AH Vest Limited on December 25, 2024 and sell it today you would earn a total of  100.00  from holding AH Vest Limited or generate 7.69% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	98.36%
Values	Daily Returns

MC Mining  vs.  AH Vest Limited

MC Mining

Risk-Adjusted Performance

Very Weak

Over the last 90 days MC Mining has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's technical and fundamental indicators remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

AH Vest Limited

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in AH Vest Limited are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady technical and fundamental indicators, AH Vest may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with MC Mining and AH Vest

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

The idea behind MC Mining and AH Vest 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.