Correlation Between MMTEC and Agent Information

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

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

Diversification Opportunities for MMTEC and Agent Information

-0.3

Correlation Coefficient

MMTEC  Agent Information

Very good diversification

The 3 months correlation between MMTEC and Agent is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding MMTEC Inc and Agent Information Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agent Information and MMTEC 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 MMTEC Inc are associated (or correlated) with Agent Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agent Information has no effect on the direction of MMTEC i.e., MMTEC and Agent Information go up and down completely randomly.

Pair Corralation between MMTEC and Agent Information

Considering the 90-day investment horizon MMTEC Inc is expected to under-perform the Agent Information. But the stock apears to be less risky and, when comparing its historical volatility, MMTEC Inc is 1.19 times less risky than Agent Information. The stock trades about -0.34 of its potential returns per unit of risk. The Agent Information Software is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  130.00  in Agent Information Software on August 30, 2024 and sell it today you would earn a total of  5.00  from holding Agent Information Software or generate 3.85% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	95.65%
Values	Daily Returns

MMTEC Inc  vs.  Agent Information Software

MMTEC Inc

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in MMTEC Inc are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather inconsistent basic indicators, MMTEC exhibited solid returns over the last few months and may actually be approaching a breakup point.

Agent Information

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Agent Information Software are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak technical and fundamental indicators, Agent Information unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with MMTEC and Agent Information

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

The idea behind MMTEC Inc and Agent Information Software 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.

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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.