Correlation Between Mercurity Fintech and EBay
Can any of the company-specific risk be diversified away by investing in both Mercurity Fintech and EBay 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 Mercurity Fintech and EBay into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mercurity Fintech Holding and eBay Inc, you can compare the effects of market volatilities on Mercurity Fintech and EBay 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 Mercurity Fintech with a short position of EBay. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mercurity Fintech and EBay.
Diversification Opportunities for Mercurity Fintech and EBay
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Mercurity and EBay is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Mercurity Fintech Holding and eBay Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on eBay Inc and Mercurity Fintech 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 Mercurity Fintech Holding are associated (or correlated) with EBay. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of eBay Inc has no effect on the direction of Mercurity Fintech i.e., Mercurity Fintech and EBay go up and down completely randomly.
Pair Corralation between Mercurity Fintech and EBay
Considering the 90-day investment horizon Mercurity Fintech Holding is expected to generate 4.96 times more return on investment than EBay. However, Mercurity Fintech is 4.96 times more volatile than eBay Inc. It trades about 0.01 of its potential returns per unit of risk. eBay Inc is currently generating about -0.17 per unit of risk. If you would invest 127.00 in Mercurity Fintech Holding on February 5, 2024 and sell it today you would lose (3.00) from holding Mercurity Fintech Holding or give up 2.36% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Mercurity Fintech Holding vs. eBay Inc
Performance |
Timeline |
Mercurity Fintech Holding |
eBay Inc |
Mercurity Fintech and EBay Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Mercurity Fintech and EBay
The main advantage of trading using opposite Mercurity Fintech and EBay positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mercurity Fintech position performs unexpectedly, EBay 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 EBay will offset losses from the drop in EBay's long position.Mercurity Fintech vs. Hut 8 Corp | Mercurity Fintech vs. CleanSpark | Mercurity Fintech vs. Bit Digital | Mercurity Fintech vs. Bitfarms |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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