Correlation Between BAYPORT MANAGEMENT and MCB GROUP

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

Diversification Opportunities for BAYPORT MANAGEMENT and MCB GROUP

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  Correlation Coefficient

Pay attention - limited upside

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

Pair Corralation between BAYPORT MANAGEMENT and MCB GROUP

If you would invest  447.00  in BAYPORT MANAGEMENT LTD on August 31, 2024 and sell it today you would earn a total of  0.00  from holding BAYPORT MANAGEMENT LTD or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

BAYPORT MANAGEMENT LTD  vs.  MCB GROUP LTD

 Performance 
       Timeline  
BAYPORT MANAGEMENT LTD 

Risk-Adjusted Performance

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

Risk-Adjusted Performance

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Weak
 
Strong
Very Weak
Over the last 90 days MCB GROUP LTD has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unsteady performance, the Stock's technical and fundamental indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

BAYPORT MANAGEMENT and MCB GROUP Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with BAYPORT MANAGEMENT and MCB GROUP

The main advantage of trading using opposite BAYPORT MANAGEMENT and MCB GROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BAYPORT MANAGEMENT position performs unexpectedly, MCB GROUP 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 MCB GROUP will offset losses from the drop in MCB GROUP's long position.
The idea behind BAYPORT MANAGEMENT LTD and MCB GROUP LTD 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.

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