Correlation Between Mike Pike and Sanwire

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Can any of the company-specific risk be diversified away by investing in both Mike Pike and Sanwire 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 Mike Pike and Sanwire into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mike The Pike and Sanwire, you can compare the effects of market volatilities on Mike Pike and Sanwire 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 Mike Pike with a short position of Sanwire. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mike Pike and Sanwire.

Diversification Opportunities for Mike Pike and Sanwire

-0.23
  Correlation Coefficient

Very good diversification

The 3 months correlation between Mike and Sanwire is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Mike The Pike and Sanwire in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sanwire and Mike Pike 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 Mike The Pike are associated (or correlated) with Sanwire. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sanwire has no effect on the direction of Mike Pike i.e., Mike Pike and Sanwire go up and down completely randomly.

Pair Corralation between Mike Pike and Sanwire

If you would invest  0.05  in Sanwire on September 21, 2024 and sell it today you would lose (0.01) from holding Sanwire or give up 20.0% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy42.86%
ValuesDaily Returns

Mike The Pike  vs.  Sanwire

 Performance 
       Timeline  
Mike The Pike 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Mike The Pike has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable forward-looking signals, Mike Pike is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.
Sanwire 

Risk-Adjusted Performance

3 of 100

 
Weak
 
Strong
Insignificant
Compared to the overall equity markets, risk-adjusted returns on investments in Sanwire are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Even with relatively unsteady basic indicators, Sanwire reported solid returns over the last few months and may actually be approaching a breakup point.

Mike Pike and Sanwire Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Mike Pike and Sanwire

The main advantage of trading using opposite Mike Pike and Sanwire positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mike Pike position performs unexpectedly, Sanwire 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 Sanwire will offset losses from the drop in Sanwire's long position.
The idea behind Mike The Pike and Sanwire 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.

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