Correlation Between Moneygram Int and EZCORP

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

By analyzing existing cross correlation between Moneygram Int and EZCORP Inc, you can compare the effects of market volatilities on Moneygram Int and EZCORP 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 EZCORP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Moneygram Int and EZCORP.

Diversification Opportunities for Moneygram Int and EZCORP

0.23

Correlation Coefficient

Moneygram Int  EZCORP

Modest diversification

The 3 months correlation between Moneygram and EZCORP is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Moneygram Int and EZCORP Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EZCORP Inc 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 EZCORP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EZCORP Inc has no effect on the direction of Moneygram Int i.e., Moneygram Int and EZCORP go up and down completely randomly.

Pair Corralation between Moneygram Int and EZCORP

If you would invest  1,102  in EZCORP Inc on September 23, 2024 and sell it today you would earn a total of  76.00  from holding EZCORP Inc or generate 6.9% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	1.54%
Values	Daily Returns

Moneygram Int  vs.  EZCORP Inc

Moneygram Int

Risk-Adjusted Performance

0 of 100

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.

EZCORP Inc

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in EZCORP Inc are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, EZCORP may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Moneygram Int and EZCORP

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

The idea behind Moneygram Int and EZCORP Inc 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.