Correlation Between Malaga Financial and Cs 604

Can any of the company-specific risk be diversified away by investing in both Malaga Financial and Cs 604 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 Malaga Financial and Cs 604 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Malaga Financial and Cs 604 Tax, you can compare the effects of market volatilities on Malaga Financial and Cs 604 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 Malaga Financial with a short position of Cs 604. Check out your portfolio center. Please also check ongoing floating volatility patterns of Malaga Financial and Cs 604.

Diversification Opportunities for Malaga Financial and Cs 604

-0.37

Correlation Coefficient

Malaga Financial  Cs 604

Very good diversification

The 3 months correlation between Malaga and FRNJVX is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Malaga Financial and Cs 604 Tax in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cs 604 Tax and Malaga 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 Malaga Financial are associated (or correlated) with Cs 604. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cs 604 Tax has no effect on the direction of Malaga Financial i.e., Malaga Financial and Cs 604 go up and down completely randomly.

Pair Corralation between Malaga Financial and Cs 604

Given the investment horizon of 90 days Malaga Financial is expected to generate 5.32 times more return on investment than Cs 604. However, Malaga Financial is 5.32 times more volatile than Cs 604 Tax. It trades about 0.03 of its potential returns per unit of risk. Cs 604 Tax is currently generating about -0.04 per unit of risk. If you would invest  2,157  in Malaga Financial on October 6, 2024 and sell it today you would earn a total of  31.00  from holding Malaga Financial or generate 1.44% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	97.62%
Values	Daily Returns

Malaga Financial  vs.  Cs 604 Tax

Malaga Financial

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Malaga Financial are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable technical and fundamental indicators, Malaga Financial is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Cs 604 Tax

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Cs 604 Tax has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Cs 604 is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Malaga Financial and Cs 604

The main advantage of trading using opposite Malaga Financial and Cs 604 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Malaga Financial position performs unexpectedly, Cs 604 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 Cs 604 will offset losses from the drop in Cs 604's long position.

The idea behind Malaga Financial and Cs 604 Tax 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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.