Correlation Between Multi Ways and HyreCar

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

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

Diversification Opportunities for Multi Ways and HyreCar

0.85

Correlation Coefficient

Multi Ways  HyreCar

Very poor diversification

The 3 months correlation between Multi and HyreCar is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Multi Ways Holdings and HyreCar in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HyreCar and Multi Ways 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 Multi Ways Holdings are associated (or correlated) with HyreCar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HyreCar has no effect on the direction of Multi Ways i.e., Multi Ways and HyreCar go up and down completely randomly.

Pair Corralation between Multi Ways and HyreCar

Considering the 90-day investment horizon Multi Ways Holdings is expected to generate 0.52 times more return on investment than HyreCar. However, Multi Ways Holdings is 1.91 times less risky than HyreCar. It trades about -0.11 of its potential returns per unit of risk. HyreCar is currently generating about -0.13 per unit of risk. If you would invest  45.00  in Multi Ways Holdings on September 17, 2024 and sell it today you would lose (20.00) from holding Multi Ways Holdings or give up 44.44% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	98.44%
Values	Daily Returns

Multi Ways Holdings  vs.  HyreCar

Multi Ways Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Multi Ways Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating 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.

HyreCar

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days HyreCar has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's technical and fundamental indicators remain relatively invariable which may send shares a bit higher in January 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Multi Ways and HyreCar

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

The idea behind Multi Ways Holdings and HyreCar 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.