Correlation Between Ming Le and MAVEN WIRELESS

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

By analyzing existing cross correlation between Ming Le Sports and MAVEN WIRELESS SWEDEN, you can compare the effects of market volatilities on Ming Le and MAVEN WIRELESS 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 Ming Le with a short position of MAVEN WIRELESS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ming Le and MAVEN WIRELESS.

Diversification Opportunities for Ming Le and MAVEN WIRELESS

-0.64

Correlation Coefficient

Ming Le  MAVEN WIRELESS

Excellent diversification

The 3 months correlation between Ming and MAVEN is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Ming Le Sports and MAVEN WIRELESS SWEDEN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MAVEN WIRELESS SWEDEN and Ming Le 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 Ming Le Sports are associated (or correlated) with MAVEN WIRELESS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MAVEN WIRELESS SWEDEN has no effect on the direction of Ming Le i.e., Ming Le and MAVEN WIRELESS go up and down completely randomly.

Pair Corralation between Ming Le and MAVEN WIRELESS

Assuming the 90 days horizon Ming Le Sports is expected to under-perform the MAVEN WIRELESS. But the stock apears to be less risky and, when comparing its historical volatility, Ming Le Sports is 1.27 times less risky than MAVEN WIRELESS. The stock trades about -0.38 of its potential returns per unit of risk. The MAVEN WIRELESS SWEDEN is currently generating about -0.16 of returns per unit of risk over similar time horizon. If you would invest  92.00  in MAVEN WIRELESS SWEDEN on September 19, 2024 and sell it today you would lose (10.00) from holding MAVEN WIRELESS SWEDEN or give up 10.87% of portfolio value over 90 days.

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

Ming Le Sports  vs.  MAVEN WIRELESS SWEDEN

Ming Le Sports

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Ming Le Sports are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Ming Le reported solid returns over the last few months and may actually be approaching a breakup point.

MAVEN WIRELESS SWEDEN

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days MAVEN WIRELESS SWEDEN has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Ming Le and MAVEN WIRELESS

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

The idea behind Ming Le Sports and MAVEN WIRELESS SWEDEN 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.