Correlation Between CSL and MECNY

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

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

Diversification Opportunities for CSL and MECNY

0.0

Correlation Coefficient

CSL  MECNY

Pay attention - limited upside

The 3 months correlation between CSL and MECNY is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CSL and MECNY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MECNY and CSL 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 CSL are associated (or correlated) with MECNY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MECNY has no effect on the direction of CSL i.e., CSL and MECNY go up and down completely randomly.

Pair Corralation between CSL and MECNY

If you would invest (100.00) in MECNY on August 15, 2025 and sell it today you would earn a total of  100.00  from holding MECNY or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

CSL  vs.  MECNY

CSL

Risk-Adjusted Performance

Weakest

Over the last 90 days CSL has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's essential indicators remain fairly strong which may send shares a bit higher in December 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

MECNY

Risk-Adjusted Performance

Weakest

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

Pair Trading with CSL and MECNY

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

The idea behind CSL and MECNY 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.