Correlation Between Storage Vault and MBN

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

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

Diversification Opportunities for Storage Vault and MBN

0.0

Correlation Coefficient

Storage Vault  MBN

Pay attention - limited upside

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

Pair Corralation between Storage Vault and MBN

If you would invest (100.00) in MBN Corporation on October 1, 2024 and sell it today you would earn a total of  100.00  from holding MBN Corporation 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

Storage Vault Canada  vs.  MBN Corp.

Storage Vault Canada

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Storage Vault Canada has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's forward indicators remain very healthy which may send shares a bit higher in January 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

MBN Corporation

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days MBN Corporation has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy fundamental drivers, MBN is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Storage Vault and MBN

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

The idea behind Storage Vault Canada and MBN Corporation 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.