Correlation Between MKDWELL Tech and Fubotv

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

By analyzing existing cross correlation between MKDWELL Tech Ordinary and Fubotv Inc, you can compare the effects of market volatilities on MKDWELL Tech and Fubotv 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 MKDWELL Tech with a short position of Fubotv. Check out your portfolio center. Please also check ongoing floating volatility patterns of MKDWELL Tech and Fubotv.

Diversification Opportunities for MKDWELL Tech and Fubotv

-0.79

Correlation Coefficient

MKDWELL Tech  Fubotv

Pay attention - limited upside

The 3 months correlation between MKDWELL and Fubotv is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding MKDWELL Tech Ordinary and Fubotv Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fubotv Inc and MKDWELL Tech 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 MKDWELL Tech Ordinary are associated (or correlated) with Fubotv. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fubotv Inc has no effect on the direction of MKDWELL Tech i.e., MKDWELL Tech and Fubotv go up and down completely randomly.

Pair Corralation between MKDWELL Tech and Fubotv

Given the investment horizon of 90 days MKDWELL Tech Ordinary is expected to under-perform the Fubotv. But the stock apears to be less risky and, when comparing its historical volatility, MKDWELL Tech Ordinary is 1.47 times less risky than Fubotv. The stock trades about -0.1 of its potential returns per unit of risk. The Fubotv Inc is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  164.00  in Fubotv Inc on December 2, 2024 and sell it today you would earn a total of  139.00  from holding Fubotv Inc or generate 84.76% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	60.73%
Values	Daily Returns

MKDWELL Tech Ordinary  vs.  Fubotv Inc

MKDWELL Tech Ordinary

Risk-Adjusted Performance

Very Weak

Over the last 90 days MKDWELL Tech Ordinary has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's fundamental indicators remain fairly stable which may send shares a bit higher in April 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Fubotv Inc

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Fubotv Inc are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain fundamental drivers, Fubotv displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with MKDWELL Tech and Fubotv

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

The idea behind MKDWELL Tech Ordinary and Fubotv 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.

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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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.