Correlation Between Moneygram Int and Federal Agricultural

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

By analyzing existing cross correlation between Moneygram Int and Federal Agricultural Mortgage, you can compare the effects of market volatilities on Moneygram Int and Federal Agricultural 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 Moneygram Int with a short position of Federal Agricultural. Check out your portfolio center. Please also check ongoing floating volatility patterns of Moneygram Int and Federal Agricultural.

Diversification Opportunities for Moneygram Int and Federal Agricultural

0.0

Correlation Coefficient

Moneygram Int  Federal Agricultural

Pay attention - limited upside

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

Pair Corralation between Moneygram Int and Federal Agricultural

If you would invest  14,720  in Federal Agricultural Mortgage on December 27, 2024 and sell it today you would earn a total of  166.00  from holding Federal Agricultural Mortgage or generate 1.13% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Moneygram Int  vs.  Federal Agricultural Mortgage

Moneygram Int

Risk-Adjusted Performance

Very Weak

Over the last 90 days Moneygram Int has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong technical and fundamental indicators, Moneygram Int is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Federal Agricultural

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Federal Agricultural Mortgage are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Federal Agricultural is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Moneygram Int and Federal Agricultural

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

The idea behind Moneygram Int and Federal Agricultural Mortgage 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.