Correlation Between 04685A3F6 and Malaga Financial

Can any of the company-specific risk be diversified away by investing in both 04685A3F6 and Malaga Financial 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 04685A3F6 and Malaga Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between ATH 1716 07 JAN 25 and Malaga Financial, you can compare the effects of market volatilities on 04685A3F6 and Malaga Financial 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 04685A3F6 with a short position of Malaga Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of 04685A3F6 and Malaga Financial.

Diversification Opportunities for 04685A3F6 and Malaga Financial

0.34

Correlation Coefficient

04685A3F6  Malaga Financial

Weak diversification

The 3 months correlation between 04685A3F6 and Malaga is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding ATH 1716 07 JAN 25 and Malaga Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Malaga Financial and 04685A3F6 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 ATH 1716 07 JAN 25 are associated (or correlated) with Malaga Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Malaga Financial has no effect on the direction of 04685A3F6 i.e., 04685A3F6 and Malaga Financial go up and down completely randomly.

Pair Corralation between 04685A3F6 and Malaga Financial

Assuming the 90 days trading horizon ATH 1716 07 JAN 25 is expected to under-perform the Malaga Financial. But the bond apears to be less risky and, when comparing its historical volatility, ATH 1716 07 JAN 25 is 1.31 times less risky than Malaga Financial. The bond trades about -0.2 of its potential returns per unit of risk. The Malaga Financial is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest  2,157  in Malaga Financial on October 26, 2024 and sell it today you would lose (41.00) from holding Malaga Financial or give up 1.9% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	35.59%
Values	Daily Returns

ATH 1716 07 JAN 25  vs.  Malaga Financial

ATH 1716 07

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ATH 1716 07 JAN 25 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Bond's basic indicators remain somewhat strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for ATH 1716 07 JAN 25 investors.

Malaga Financial

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Malaga Financial has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical and fundamental indicators, Malaga Financial is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with 04685A3F6 and Malaga Financial

The main advantage of trading using opposite 04685A3F6 and Malaga Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 04685A3F6 position performs unexpectedly, Malaga Financial 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 Malaga Financial will offset losses from the drop in Malaga Financial's long position.

The idea behind ATH 1716 07 JAN 25 and Malaga Financial 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.