Correlation Between Maxx Sports and Lingerie Fighting

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

By analyzing existing cross correlation between Maxx Sports TV and Lingerie Fighting Championships, you can compare the effects of market volatilities on Maxx Sports and Lingerie Fighting 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 Maxx Sports with a short position of Lingerie Fighting. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maxx Sports and Lingerie Fighting.

Diversification Opportunities for Maxx Sports and Lingerie Fighting

-0.12

Correlation Coefficient

Maxx Sports  Lingerie Fighting

Good diversification

The 3 months correlation between Maxx and Lingerie is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Maxx Sports TV and Lingerie Fighting Championship in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lingerie Fighting and Maxx Sports 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 Maxx Sports TV are associated (or correlated) with Lingerie Fighting. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lingerie Fighting has no effect on the direction of Maxx Sports i.e., Maxx Sports and Lingerie Fighting go up and down completely randomly.

Pair Corralation between Maxx Sports and Lingerie Fighting

Given the investment horizon of 90 days Maxx Sports TV is expected to under-perform the Lingerie Fighting. But the pink sheet apears to be less risky and, when comparing its historical volatility, Maxx Sports TV is 2.45 times less risky than Lingerie Fighting. The pink sheet trades about -0.17 of its potential returns per unit of risk. The Lingerie Fighting Championships is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest  0.01  in Lingerie Fighting Championships on September 21, 2024 and sell it today you would earn a total of  0.01  from holding Lingerie Fighting Championships or generate 100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Maxx Sports TV  vs.  Lingerie Fighting Championship

Maxx Sports TV

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Maxx Sports TV has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Lingerie Fighting

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Lingerie Fighting Championships are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating basic indicators, Lingerie Fighting showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Maxx Sports and Lingerie Fighting

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

The idea behind Maxx Sports TV and Lingerie Fighting Championships 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.

Check out your portfolio center.

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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.