Correlation Between Dana and MultiMetaVerse Holdings

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

By analyzing existing cross correlation between Dana Inc and MultiMetaVerse Holdings Limited, you can compare the effects of market volatilities on Dana and MultiMetaVerse Holdings 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 Dana with a short position of MultiMetaVerse Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dana and MultiMetaVerse Holdings.

Diversification Opportunities for Dana and MultiMetaVerse Holdings

-0.15

Correlation Coefficient

Dana  MultiMetaVerse Holdings

Good diversification

The 3 months correlation between Dana and MultiMetaVerse is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Dana Inc and MultiMetaVerse Holdings Limite in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MultiMetaVerse Holdings and Dana 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 Dana Inc are associated (or correlated) with MultiMetaVerse Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MultiMetaVerse Holdings has no effect on the direction of Dana i.e., Dana and MultiMetaVerse Holdings go up and down completely randomly.

Pair Corralation between Dana and MultiMetaVerse Holdings

Considering the 90-day investment horizon Dana Inc is expected to generate 0.22 times more return on investment than MultiMetaVerse Holdings. However, Dana Inc is 4.55 times less risky than MultiMetaVerse Holdings. It trades about 0.15 of its potential returns per unit of risk. MultiMetaVerse Holdings Limited is currently generating about 0.01 per unit of risk. If you would invest  923.00  in Dana Inc on September 12, 2024 and sell it today you would earn a total of  372.00  from holding Dana Inc or generate 40.3% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	63.49%
Values	Daily Returns

Dana Inc  vs.  MultiMetaVerse Holdings Limite

Dana Inc

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Dana Inc are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain basic indicators, Dana displayed solid returns over the last few months and may actually be approaching a breakup point.

MultiMetaVerse Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days MultiMetaVerse Holdings Limited has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly weak basic indicators, MultiMetaVerse Holdings may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Dana and MultiMetaVerse Holdings

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

The idea behind Dana Inc and MultiMetaVerse Holdings Limited 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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.