Correlation Between Crexendo and MKDWELL Tech

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

By analyzing existing cross correlation between Crexendo and MKDWELL Tech Ordinary, you can compare the effects of market volatilities on Crexendo and MKDWELL Tech 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 Crexendo with a short position of MKDWELL Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Crexendo and MKDWELL Tech.

Diversification Opportunities for Crexendo and MKDWELL Tech

-0.46

Correlation Coefficient

Crexendo  MKDWELL Tech

Very good diversification

The 3 months correlation between Crexendo and MKDWELL is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Crexendo and MKDWELL Tech Ordinary in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MKDWELL Tech Ordinary and Crexendo 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 Crexendo are associated (or correlated) with MKDWELL Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MKDWELL Tech Ordinary has no effect on the direction of Crexendo i.e., Crexendo and MKDWELL Tech go up and down completely randomly.

Pair Corralation between Crexendo and MKDWELL Tech

Given the investment horizon of 90 days Crexendo is expected to generate 0.38 times more return on investment than MKDWELL Tech. However, Crexendo is 2.6 times less risky than MKDWELL Tech. It trades about 0.06 of its potential returns per unit of risk. MKDWELL Tech Ordinary is currently generating about -0.11 per unit of risk. If you would invest  202.00  in Crexendo on September 2, 2024 and sell it today you would earn a total of  336.00  from holding Crexendo or generate 166.34% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	18.15%
Values	Daily Returns

Crexendo  vs.  MKDWELL Tech Ordinary

Crexendo

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Crexendo are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of very weak fundamental indicators, Crexendo displayed solid returns over the last few months and may actually be approaching a breakup point.

MKDWELL Tech Ordinary

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days MKDWELL Tech Ordinary has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's fundamental indicators remain fairly stable which may send shares a bit higher in January 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Pair Trading with Crexendo and MKDWELL Tech

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

The idea behind Crexendo and MKDWELL Tech Ordinary 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.