Correlation Between Matching Maximize and Samart Public

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

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

Diversification Opportunities for Matching Maximize and Samart Public

0.39

Correlation Coefficient

Matching Maximize  Samart Public

Weak diversification

The 3 months correlation between Matching and Samart is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Matching Maximize Solution and Samart Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samart Public and Matching Maximize 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 Matching Maximize Solution are associated (or correlated) with Samart Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samart Public has no effect on the direction of Matching Maximize i.e., Matching Maximize and Samart Public go up and down completely randomly.

Pair Corralation between Matching Maximize and Samart Public

Assuming the 90 days trading horizon Matching Maximize Solution is expected to generate 1.27 times more return on investment than Samart Public. However, Matching Maximize is 1.27 times more volatile than Samart Public. It trades about 0.04 of its potential returns per unit of risk. Samart Public is currently generating about -0.04 per unit of risk. If you would invest  146.00  in Matching Maximize Solution on March 28, 2024 and sell it today you would earn a total of  2.00  from holding Matching Maximize Solution or generate 1.37% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Matching Maximize Solution  vs.  Samart Public

Matching Maximize

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Matching Maximize Solution has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong technical indicators, Matching Maximize is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Samart Public

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Samart Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest conflicting performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with Matching Maximize and Samart Public

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

The idea behind Matching Maximize Solution and Samart Public 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 Stocks Directory module to find actively traded stocks across global markets.