Correlation Between Mainz Biomed and TrueCar

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

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

Diversification Opportunities for Mainz Biomed and TrueCar

-0.06

Correlation Coefficient

Mainz Biomed  TrueCar

Good diversification

The 3 months correlation between Mainz and TrueCar is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Mainz Biomed BV and TrueCar in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TrueCar and Mainz Biomed 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 Mainz Biomed BV are associated (or correlated) with TrueCar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TrueCar has no effect on the direction of Mainz Biomed i.e., Mainz Biomed and TrueCar go up and down completely randomly.

Pair Corralation between Mainz Biomed and TrueCar

Given the investment horizon of 90 days Mainz Biomed BV is expected to under-perform the TrueCar. In addition to that, Mainz Biomed is 1.23 times more volatile than TrueCar. It trades about -0.06 of its total potential returns per unit of risk. TrueCar is currently generating about -0.01 per unit of volatility. If you would invest  402.00  in TrueCar on July 31, 2025 and sell it today you would lose (172.00) from holding TrueCar or give up 42.79% of portfolio value over 90 days.

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

Mainz Biomed BV  vs.  TrueCar

Mainz Biomed BV

Risk-Adjusted Performance

Weakest

Over the last 90 days Mainz Biomed BV has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Mainz Biomed is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

TrueCar

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in TrueCar are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile basic indicators, TrueCar exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Mainz Biomed and TrueCar

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

The idea behind Mainz Biomed BV and TrueCar 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.

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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.