Correlation Between Mingzhu Logistics and Presidio Property

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

By analyzing existing cross correlation between Mingzhu Logistics Holdings and Presidio Property Trust, you can compare the effects of market volatilities on Mingzhu Logistics and Presidio Property 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 Mingzhu Logistics with a short position of Presidio Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mingzhu Logistics and Presidio Property.

Diversification Opportunities for Mingzhu Logistics and Presidio Property

0.3

Correlation Coefficient

Mingzhu Logistics  Presidio Property

Weak diversification

The 3 months correlation between Mingzhu and Presidio is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Mingzhu Logistics Holdings and Presidio Property Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Presidio Property Trust and Mingzhu Logistics 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 Mingzhu Logistics Holdings are associated (or correlated) with Presidio Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Presidio Property Trust has no effect on the direction of Mingzhu Logistics i.e., Mingzhu Logistics and Presidio Property go up and down completely randomly.

Pair Corralation between Mingzhu Logistics and Presidio Property

Given the investment horizon of 90 days Mingzhu Logistics Holdings is expected to generate 1.15 times more return on investment than Presidio Property. However, Mingzhu Logistics is 1.15 times more volatile than Presidio Property Trust. It trades about 0.03 of its potential returns per unit of risk. Presidio Property Trust is currently generating about 0.01 per unit of risk. If you would invest  113.00  in Mingzhu Logistics Holdings on September 4, 2024 and sell it today you would lose (1.00) from holding Mingzhu Logistics Holdings or give up 0.88% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Mingzhu Logistics Holdings  vs.  Presidio Property Trust

Mingzhu Logistics

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Mingzhu Logistics Holdings are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating primary indicators, Mingzhu Logistics may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Presidio Property Trust

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Presidio Property Trust are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable technical and fundamental indicators, Presidio Property is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Mingzhu Logistics and Presidio Property

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

The idea behind Mingzhu Logistics Holdings and Presidio Property Trust 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.