Correlation Between MNW and EOSDT

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

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

Diversification Opportunities for MNW and EOSDT

0.03

Correlation Coefficient

MNW  EOSDT

Significant diversification

The 3 months correlation between MNW and EOSDT is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding MNW and EOSDT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EOSDT and MNW 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 MNW are associated (or correlated) with EOSDT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EOSDT has no effect on the direction of MNW i.e., MNW and EOSDT go up and down completely randomly.

Pair Corralation between MNW and EOSDT

If you would invest  32.00  in EOSDT on January 30, 2024 and sell it today you would earn a total of  0.00  from holding EOSDT or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	4.76%
Values	Daily Returns

MNW  vs.  EOSDT

MNW

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days MNW has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, MNW is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

EOSDT

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days EOSDT has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, EOSDT is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with MNW and EOSDT

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

The idea behind MNW and EOSDT 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.