Correlation Between Multistack International and Creative Global

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

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

Diversification Opportunities for Multistack International and Creative Global

0.0

Correlation Coefficient

Multistack International  Creative Global

Pay attention - limited upside

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

Pair Corralation between Multistack International and Creative Global

If you would invest  0.00  in Creative Global Technology on September 27, 2024 and sell it today you would earn a total of  839.00  from holding Creative Global Technology or generate 9.223372036854776E16% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	51.16%
Values	Daily Returns

Multistack International  vs.  Creative Global Technology

Multistack International

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Multistack International has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable forward indicators, Multistack International is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Creative Global Tech

Risk-Adjusted Performance

18 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Creative Global Technology are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. Despite quite abnormal basic indicators, Creative Global disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Multistack International and Creative Global

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

The idea behind Multistack International and Creative Global Technology 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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.