Correlation Between MMTEC and Inpixon

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

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

Diversification Opportunities for MMTEC and Inpixon

0.77

Correlation Coefficient

MMTEC  Inpixon

Poor diversification

The 3 months correlation between MMTEC and Inpixon is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding MMTEC Inc and Inpixon in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inpixon and MMTEC 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 MMTEC Inc are associated (or correlated) with Inpixon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inpixon has no effect on the direction of MMTEC i.e., MMTEC and Inpixon go up and down completely randomly.

Pair Corralation between MMTEC and Inpixon

If you would invest  840.00  in MMTEC Inc on October 3, 2024 and sell it today you would lose (683.00) from holding MMTEC Inc or give up 81.31% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	0.37%
Values	Daily Returns

MMTEC Inc  vs.  Inpixon

MMTEC Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days MMTEC Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in February 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Inpixon

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with MMTEC and Inpixon

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

The idea behind MMTEC Inc and Inpixon 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.