Correlation Between Max Financial and 63 Moons

Can any of the company-specific risk be diversified away by investing in both Max Financial and 63 Moons 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 Max Financial and 63 Moons into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Max Financial Services and 63 moons technologies, you can compare the effects of market volatilities on Max Financial and 63 Moons 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 Max Financial with a short position of 63 Moons. Check out your portfolio center. Please also check ongoing floating volatility patterns of Max Financial and 63 Moons.

Diversification Opportunities for Max Financial and 63 Moons

-0.38

Correlation Coefficient

Max Financial  63 Moons

Very good diversification

The 3 months correlation between Max and 63MOONS is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Max Financial Services and 63 moons technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 63 moons technologies and Max Financial 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 Max Financial Services are associated (or correlated) with 63 Moons. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 63 moons technologies has no effect on the direction of Max Financial i.e., Max Financial and 63 Moons go up and down completely randomly.

Pair Corralation between Max Financial and 63 Moons

Assuming the 90 days trading horizon Max Financial Services is expected to under-perform the 63 Moons. But the stock apears to be less risky and, when comparing its historical volatility, Max Financial Services is 1.98 times less risky than 63 Moons. The stock trades about -0.15 of its potential returns per unit of risk. The 63 moons technologies is currently generating about 0.8 of returns per unit of risk over similar time horizon. If you would invest  57,595  in 63 moons technologies on September 24, 2024 and sell it today you would earn a total of  40,415  from holding 63 moons technologies or generate 70.17% return on investment over 90 days.

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

Max Financial Services  vs.  63 moons technologies

Max Financial Services

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Max Financial Services has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Max Financial is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

63 moons technologies

Risk-Adjusted Performance

28 of 100

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in 63 moons technologies are ranked lower than 28 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, 63 Moons unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Max Financial and 63 Moons

The main advantage of trading using opposite Max Financial and 63 Moons positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Max Financial position performs unexpectedly, 63 Moons 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 63 Moons will offset losses from the drop in 63 Moons' long position.

The idea behind Max Financial Services and 63 moons technologies 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.