Correlation Between PFMT Old and Maximus

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

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

Diversification Opportunities for PFMT Old and Maximus

0.0

Correlation Coefficient

PFMT Old  Maximus

Pay attention - limited upside

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

Pair Corralation between PFMT Old and Maximus

If you would invest (100.00) in PFMT Old on December 30, 2024 and sell it today you would earn a total of  100.00  from holding PFMT Old or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

PFMT Old  vs.  Maximus

PFMT Old

Risk-Adjusted Performance

Very Weak

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

Maximus

Risk-Adjusted Performance

Very Weak

Over the last 90 days Maximus has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's primary indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with PFMT Old and Maximus

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

The idea behind PFMT Old and Maximus 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 Commodity Directory module to find actively traded commodities issued by global exchanges.