Correlation Between MFF Capital and ABACUS STORAGE
Can any of the company-specific risk be diversified away by investing in both MFF Capital and ABACUS STORAGE 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 MFF Capital and ABACUS STORAGE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MFF Capital Investments and ABACUS STORAGE KING, you can compare the effects of market volatilities on MFF Capital and ABACUS STORAGE 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 MFF Capital with a short position of ABACUS STORAGE. Check out your portfolio center. Please also check ongoing floating volatility patterns of MFF Capital and ABACUS STORAGE.
Diversification Opportunities for MFF Capital and ABACUS STORAGE
-0.91 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MFF and ABACUS is -0.91. Overlapping area represents the amount of risk that can be diversified away by holding MFF Capital Investments and ABACUS STORAGE KING in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ABACUS STORAGE KING and MFF Capital 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 MFF Capital Investments are associated (or correlated) with ABACUS STORAGE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ABACUS STORAGE KING has no effect on the direction of MFF Capital i.e., MFF Capital and ABACUS STORAGE go up and down completely randomly.
Pair Corralation between MFF Capital and ABACUS STORAGE
Assuming the 90 days trading horizon MFF Capital Investments is expected to generate 1.3 times more return on investment than ABACUS STORAGE. However, MFF Capital is 1.3 times more volatile than ABACUS STORAGE KING. It trades about 0.33 of its potential returns per unit of risk. ABACUS STORAGE KING is currently generating about -0.14 per unit of risk. If you would invest 420.00 in MFF Capital Investments on September 24, 2024 and sell it today you would earn a total of 42.00 from holding MFF Capital Investments or generate 10.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
MFF Capital Investments vs. ABACUS STORAGE KING
Performance |
Timeline |
MFF Capital Investments |
ABACUS STORAGE KING |
MFF Capital and ABACUS STORAGE Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with MFF Capital and ABACUS STORAGE
The main advantage of trading using opposite MFF Capital and ABACUS STORAGE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MFF Capital position performs unexpectedly, ABACUS STORAGE 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 ABACUS STORAGE will offset losses from the drop in ABACUS STORAGE's long position.MFF Capital vs. Australian Foundation Investment | MFF Capital vs. GQG Partners DRC | MFF Capital vs. Metrics Master Income | MFF Capital vs. L1 Long Short |
ABACUS STORAGE vs. Auctus Alternative Investments | ABACUS STORAGE vs. Zoom2u Technologies | ABACUS STORAGE vs. MFF Capital Investments | ABACUS STORAGE vs. Ras Technology Holdings |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
Content Syndication Quickly integrate customizable finance content to your own investment portal | |
Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |