Correlation Between ISpecimen and MMTEC

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

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

Diversification Opportunities for ISpecimen and MMTEC

0.43

Correlation Coefficient

ISpecimen  MMTEC

Very weak diversification

The 3 months correlation between ISpecimen and MMTEC is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding iSpecimen and MMTEC Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MMTEC Inc and ISpecimen 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 iSpecimen 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 ISpecimen i.e., ISpecimen and MMTEC go up and down completely randomly.

Pair Corralation between ISpecimen and MMTEC

Given the investment horizon of 90 days iSpecimen is expected to generate 1.12 times more return on investment than MMTEC. However, ISpecimen is 1.12 times more volatile than MMTEC Inc. It trades about -0.05 of its potential returns per unit of risk. MMTEC Inc is currently generating about -0.06 per unit of risk. If you would invest  128.00  in iSpecimen on May 1, 2025 and sell it today you would lose (22.00) from holding iSpecimen or give up 17.19% of portfolio value over 90 days.

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

iSpecimen  vs.  MMTEC Inc

iSpecimen

Risk-Adjusted Performance

Very Weak

Over the last 90 days iSpecimen has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in August 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

MMTEC Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days MMTEC Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in August 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with ISpecimen and MMTEC

The main advantage of trading using opposite ISpecimen and MMTEC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ISpecimen 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 iSpecimen 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.