Correlation Between Creative Realities and MMTEC

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

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

Diversification Opportunities for Creative Realities and MMTEC

0.31

Correlation Coefficient

Creative Realities  MMTEC

Weak diversification

The 3 months correlation between Creative and MMTEC is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Creative Realities and MMTEC Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MMTEC Inc and Creative Realities 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 Creative Realities are associated (or correlated) with MMTEC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MMTEC Inc has no effect on the direction of Creative Realities i.e., Creative Realities and MMTEC go up and down completely randomly.

Pair Corralation between Creative Realities and MMTEC

Given the investment horizon of 90 days Creative Realities is expected to under-perform the MMTEC. But the stock apears to be less risky and, when comparing its historical volatility, Creative Realities is 1.54 times less risky than MMTEC. The stock trades about -0.09 of its potential returns per unit of risk. The MMTEC Inc is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest  99.00  in MMTEC Inc on July 10, 2025 and sell it today you would lose (13.00) from holding MMTEC Inc or give up 13.13% of portfolio value over 90 days.

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

Creative Realities  vs.  MMTEC Inc

Creative Realities

Risk-Adjusted Performance

Weakest

Over the last 90 days Creative Realities has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's technical and fundamental indicators remain fairly strong which may send shares a bit higher in November 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

MMTEC Inc

Risk-Adjusted Performance

Weakest

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

Pair Trading with Creative Realities and MMTEC

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

The idea behind Creative Realities and MMTEC Inc 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.