Correlation Between Investment Friends and MCI Management

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

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

Diversification Opportunities for Investment Friends and MCI Management

0.0

Correlation Coefficient

Investment Friends  MCI Management

Pay attention - limited upside

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

Pair Corralation between Investment Friends and MCI Management

If you would invest  2,440  in MCI Management SA on April 24, 2025 and sell it today you would earn a total of  450.00  from holding MCI Management SA or generate 18.44% return on investment over 90 days.

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

Investment Friends Capital  vs.  MCI Management SA

Investment Friends

Risk-Adjusted Performance

Very Weak

Over the last 90 days Investment Friends Capital has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Investment Friends is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

MCI Management SA

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in MCI Management SA are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, MCI Management reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Investment Friends and MCI Management

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

The idea behind Investment Friends Capital and MCI Management SA 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.