Correlation Between MGO Global and SRAX

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

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

Diversification Opportunities for MGO Global and SRAX

-0.12

Correlation Coefficient

MGO Global  SRAX

Good diversification

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

Pair Corralation between MGO Global and SRAX

If you would invest  60.00  in SRAX Inc on September 5, 2024 and sell it today you would earn a total of  0.00  from holding SRAX Inc or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	4.55%
Values	Daily Returns

MGO Global Common  vs.  SRAX Inc

MGO Global Common

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in MGO Global Common are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent basic indicators, MGO Global is not utilizing all of its potentials. The newest stock price mess, may contribute to short-term losses for the institutional investors.

SRAX Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days SRAX Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, SRAX is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with MGO Global and SRAX

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

The idea behind MGO Global Common and SRAX Inc 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.