Correlation Between MMTEC and EzFill Holdings

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

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

Diversification Opportunities for MMTEC and EzFill Holdings

-0.21

Correlation Coefficient

MMTEC  EzFill Holdings

Very good diversification

The 3 months correlation between MMTEC and EzFill is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding MMTEC Inc and EzFill Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EzFill Holdings 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 EzFill Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EzFill Holdings has no effect on the direction of MMTEC i.e., MMTEC and EzFill Holdings go up and down completely randomly.

Pair Corralation between MMTEC and EzFill Holdings

Considering the 90-day investment horizon MMTEC Inc is expected to under-perform the EzFill Holdings. In addition to that, MMTEC is 1.29 times more volatile than EzFill Holdings. It trades about -0.34 of its total potential returns per unit of risk. EzFill Holdings is currently generating about -0.1 per unit of volatility. If you would invest  275.00  in EzFill Holdings on August 30, 2024 and sell it today you would lose (34.00) from holding EzFill Holdings or give up 12.36% of portfolio value over 90 days.

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

MMTEC Inc  vs.  EzFill Holdings

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.

EzFill Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days EzFill Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's technical and fundamental indicators remain quite persistent which may send shares a bit higher in December 2024. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with MMTEC and EzFill Holdings

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

The idea behind MMTEC Inc and EzFill Holdings 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.