Correlation Between MACOM Technology and Mangazeya Mining

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

By analyzing existing cross correlation between MACOM Technology Solutions and Mangazeya Mining, you can compare the effects of market volatilities on MACOM Technology and Mangazeya Mining 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 MACOM Technology with a short position of Mangazeya Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of MACOM Technology and Mangazeya Mining.

Diversification Opportunities for MACOM Technology and Mangazeya Mining

0.0

Correlation Coefficient

MACOM Technology  Mangazeya Mining

Pay attention - limited upside

The 3 months correlation between MACOM and Mangazeya is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding MACOM Technology Solutions and Mangazeya Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mangazeya Mining and MACOM Technology 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 MACOM Technology Solutions are associated (or correlated) with Mangazeya Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mangazeya Mining has no effect on the direction of MACOM Technology i.e., MACOM Technology and Mangazeya Mining go up and down completely randomly.

Pair Corralation between MACOM Technology and Mangazeya Mining

If you would invest  12,323  in MACOM Technology Solutions on September 17, 2024 and sell it today you would earn a total of  1,769  from holding MACOM Technology Solutions or generate 14.36% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	90.48%
Values	Daily Returns

MACOM Technology Solutions  vs.  Mangazeya Mining

MACOM Technology Sol

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in MACOM Technology Solutions are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent basic indicators, MACOM Technology demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Mangazeya Mining

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Mangazeya Mining has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical and fundamental indicators, Mangazeya Mining is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with MACOM Technology and Mangazeya Mining

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

The idea behind MACOM Technology Solutions and Mangazeya Mining 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.