Correlation Between EM and MX Token

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

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

Diversification Opportunities for EM and MX Token

0.0

Correlation Coefficient

EM  MX Token

Pay attention - limited upside

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

Pair Corralation between EM and MX Token

If you would invest  0.01  in EM on April 20, 2025 and sell it today you would earn a total of  0.00  from holding EM or generate 0.0% return on investment over 90 days.

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

EM  vs.  MX Token

EM

Risk-Adjusted Performance

Very Weak

Over the last 90 days EM has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound fundamental indicators, EM is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

MX Token

Risk-Adjusted Performance

Very Weak

Over the last 90 days MX Token has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Crypto's fundamental indicators remain rather sound which may send shares a bit higher in August 2025. The latest tumult may also be a sign of longer-term up-swing for MX Token shareholders.

Pair Trading with EM and MX Token

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

The idea behind EM and MX Token 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.