Correlation Between MIND CTI and ProntoForms

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

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

Diversification Opportunities for MIND CTI and ProntoForms

0.0

Correlation Coefficient

MIND CTI  ProntoForms

Pay attention - limited upside

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

Pair Corralation between MIND CTI and ProntoForms

If you would invest  192.00  in MIND CTI on September 13, 2024 and sell it today you would earn a total of  8.00  from holding MIND CTI or generate 4.17% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.59%
Values	Daily Returns

MIND CTI  vs.  ProntoForms

MIND CTI

Risk-Adjusted Performance

4 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in MIND CTI are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy fundamental indicators, MIND CTI is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

ProntoForms

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ProntoForms has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, ProntoForms is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with MIND CTI and ProntoForms

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

The idea behind MIND CTI and ProntoForms 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.