Correlation Between AdCapital and MIRAIT ONE

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

By analyzing existing cross correlation between AdCapital AG and MIRAIT ONE P, you can compare the effects of market volatilities on AdCapital and MIRAIT ONE 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 AdCapital with a short position of MIRAIT ONE. Check out your portfolio center. Please also check ongoing floating volatility patterns of AdCapital and MIRAIT ONE.

Diversification Opportunities for AdCapital and MIRAIT ONE

-0.56

Correlation Coefficient

AdCapital  MIRAIT ONE

Excellent diversification

The 3 months correlation between AdCapital and MIRAIT is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding AdCapital AG and MIRAIT ONE P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MIRAIT ONE P and AdCapital 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 AdCapital AG are associated (or correlated) with MIRAIT ONE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MIRAIT ONE P has no effect on the direction of AdCapital i.e., AdCapital and MIRAIT ONE go up and down completely randomly.

Pair Corralation between AdCapital and MIRAIT ONE

Assuming the 90 days horizon AdCapital is expected to generate 4.38 times less return on investment than MIRAIT ONE. In addition to that, AdCapital is 2.17 times more volatile than MIRAIT ONE P. It trades about 0.02 of its total potential returns per unit of risk. MIRAIT ONE P is currently generating about 0.16 per unit of volatility. If you would invest  1,320  in MIRAIT ONE P on April 20, 2025 and sell it today you would earn a total of  170.00  from holding MIRAIT ONE P or generate 12.88% return on investment over 90 days.

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

AdCapital AG  vs.  MIRAIT ONE P

AdCapital AG

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in AdCapital AG are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, AdCapital is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

MIRAIT ONE P

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in MIRAIT ONE P are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, MIRAIT ONE may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with AdCapital and MIRAIT ONE

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

The idea behind AdCapital AG and MIRAIT ONE P 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.