Correlation Between Proficient Auto and Natures Miracle

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

By analyzing existing cross correlation between Proficient Auto Logistics, and Natures Miracle Holding, you can compare the effects of market volatilities on Proficient Auto and Natures Miracle 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 Proficient Auto with a short position of Natures Miracle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Proficient Auto and Natures Miracle.

Diversification Opportunities for Proficient Auto and Natures Miracle

-0.29

Correlation Coefficient

Proficient Auto  Natures Miracle

Very good diversification

The 3 months correlation between Proficient and Natures is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Proficient Auto Logistics, and Natures Miracle Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Natures Miracle Holding and Proficient Auto 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 Proficient Auto Logistics, are associated (or correlated) with Natures Miracle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Natures Miracle Holding has no effect on the direction of Proficient Auto i.e., Proficient Auto and Natures Miracle go up and down completely randomly.

Pair Corralation between Proficient Auto and Natures Miracle

Considering the 90-day investment horizon Proficient Auto Logistics, is expected to generate 0.15 times more return on investment than Natures Miracle. However, Proficient Auto Logistics, is 6.61 times less risky than Natures Miracle. It trades about 0.4 of its potential returns per unit of risk. Natures Miracle Holding is currently generating about -0.27 per unit of risk. If you would invest  808.00  in Proficient Auto Logistics, on October 26, 2024 and sell it today you would earn a total of  195.00  from holding Proficient Auto Logistics, or generate 24.13% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	88.89%
Values	Daily Returns

Proficient Auto Logistics,  vs.  Natures Miracle Holding

Proficient Auto Logi

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Proficient Auto Logistics, are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite quite unfluctuating basic indicators, Proficient Auto disclosed solid returns over the last few months and may actually be approaching a breakup point.

Natures Miracle Holding

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Natures Miracle Holding has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Stock's technical indicators remain fairly strong which may send shares a bit higher in February 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with Proficient Auto and Natures Miracle

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

The idea behind Proficient Auto Logistics, and Natures Miracle Holding 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.