Correlation Between 655844CN6 and Malaga Financial

Can any of the company-specific risk be diversified away by investing in both 655844CN6 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 655844CN6 and Malaga Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between NSC 37 15 MAR 53 and Malaga Financial, you can compare the effects of market volatilities on 655844CN6 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 655844CN6 with a short position of Malaga Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of 655844CN6 and Malaga Financial.

Diversification Opportunities for 655844CN6 and Malaga Financial

-0.16

Correlation Coefficient

655844CN6  Malaga Financial

Good diversification

The 3 months correlation between 655844CN6 and Malaga is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding NSC 37 15 MAR 53 and Malaga Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Malaga Financial and 655844CN6 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 NSC 37 15 MAR 53 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 655844CN6 i.e., 655844CN6 and Malaga Financial go up and down completely randomly.

Pair Corralation between 655844CN6 and Malaga Financial

Assuming the 90 days trading horizon NSC 37 15 MAR 53 is expected to under-perform the Malaga Financial. In addition to that, 655844CN6 is 2.47 times more volatile than Malaga Financial. It trades about -0.01 of its total potential returns per unit of risk. Malaga Financial is currently generating about 0.04 per unit of volatility. If you would invest  2,141  in Malaga Financial on October 11, 2024 and sell it today you would earn a total of  59.00  from holding Malaga Financial or generate 2.76% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	67.5%
Values	Daily Returns

NSC 37 15 MAR 53  vs.  Malaga Financial

NSC 37 15

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days NSC 37 15 MAR 53 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Bond's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for NSC 37 15 MAR 53 investors.

Malaga Financial

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Malaga Financial are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. 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 655844CN6 and Malaga Financial

The main advantage of trading using opposite 655844CN6 and Malaga Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 655844CN6 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 NSC 37 15 MAR 53 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.