Correlation Between FuelPositive Corp and Mullen

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

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

Diversification Opportunities for FuelPositive Corp and Mullen

-0.18

Correlation Coefficient

FuelPositive Corp  Mullen

Good diversification

The 3 months correlation between FuelPositive and Mullen is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding FuelPositive Corp and Mullen Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mullen Group and FuelPositive Corp 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 FuelPositive Corp are associated (or correlated) with Mullen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mullen Group has no effect on the direction of FuelPositive Corp i.e., FuelPositive Corp and Mullen go up and down completely randomly.

Pair Corralation between FuelPositive Corp and Mullen

Assuming the 90 days trading horizon FuelPositive Corp is expected to under-perform the Mullen. In addition to that, FuelPositive Corp is 5.07 times more volatile than Mullen Group. It trades about 0.0 of its total potential returns per unit of risk. Mullen Group is currently generating about 0.03 per unit of volatility. If you would invest  1,229  in Mullen Group on October 9, 2024 and sell it today you would earn a total of  275.00  from holding Mullen Group or generate 22.38% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	99.8%
Values	Daily Returns

FuelPositive Corp  vs.  Mullen Group

FuelPositive Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days FuelPositive Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable technical indicators, FuelPositive Corp is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Mullen Group

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Mullen Group are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of very weak essential indicators, Mullen may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with FuelPositive Corp and Mullen

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

The idea behind FuelPositive Corp and Mullen Group 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.