Correlation Between MMTEC and ISpecimen

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

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

Diversification Opportunities for MMTEC and ISpecimen

-0.39

Correlation Coefficient

MMTEC  ISpecimen

Very good diversification

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

Pair Corralation between MMTEC and ISpecimen

Considering the 90-day investment horizon MMTEC Inc is expected to under-perform the ISpecimen. But the stock apears to be less risky and, when comparing its historical volatility, MMTEC Inc is 3.7 times less risky than ISpecimen. The stock trades about -0.02 of its potential returns per unit of risk. The iSpecimen is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  98.00  in iSpecimen on June 28, 2025 and sell it today you would earn a total of  35.00  from holding iSpecimen or generate 35.71% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

MMTEC Inc  vs.  iSpecimen

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 latest uncertain performance, the Stock's basic indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

iSpecimen

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in iSpecimen are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak basic indicators, ISpecimen exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with MMTEC and ISpecimen

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

The idea behind MMTEC Inc and iSpecimen 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.