Correlation Between Mader Group and Movie Studio

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

By analyzing existing cross correlation between Mader Group Limited and Movie Studio, you can compare the effects of market volatilities on Mader Group and Movie Studio 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 Mader Group with a short position of Movie Studio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mader Group and Movie Studio.

Diversification Opportunities for Mader Group and Movie Studio

0.64

Correlation Coefficient

Mader Group  Movie Studio

Poor diversification

The 3 months correlation between Mader and Movie is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Mader Group Limited and Movie Studio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Movie Studio and Mader Group 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 Mader Group Limited are associated (or correlated) with Movie Studio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Movie Studio has no effect on the direction of Mader Group i.e., Mader Group and Movie Studio go up and down completely randomly.

Pair Corralation between Mader Group and Movie Studio

Assuming the 90 days horizon Mader Group Limited is expected to generate 0.33 times more return on investment than Movie Studio. However, Mader Group Limited is 3.05 times less risky than Movie Studio. It trades about 0.11 of its potential returns per unit of risk. Movie Studio is currently generating about 0.0 per unit of risk. If you would invest  472.00  in Mader Group Limited on July 12, 2025 and sell it today you would earn a total of  87.00  from holding Mader Group Limited or generate 18.43% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.44%
Values	Daily Returns

Mader Group Limited  vs.  Movie Studio

Mader Group Limited

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Mader Group Limited are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly unfluctuating technical and fundamental indicators, Mader Group reported solid returns over the last few months and may actually be approaching a breakup point.

Movie Studio

Risk-Adjusted Performance

Weakest

Over the last 90 days Movie Studio has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable technical and fundamental indicators, Movie Studio is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Mader Group and Movie Studio

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

The idea behind Mader Group Limited and Movie Studio 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.