Correlation Between MCH Group and Fundamenta Real

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

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

Diversification Opportunities for MCH Group and Fundamenta Real

0.0

Correlation Coefficient

MCH Group  Fundamenta Real

Pay attention - limited upside

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

Pair Corralation between MCH Group and Fundamenta Real

If you would invest  320.00  in MCH Group AG on April 21, 2025 and sell it today you would earn a total of  33.00  from holding MCH Group AG or generate 10.31% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.61%
Values	Daily Returns

MCH Group AG  vs.  Fundamenta Real Estate

MCH Group AG

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in MCH Group AG are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain basic indicators, MCH Group may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Fundamenta Real Estate

Risk-Adjusted Performance

Modest

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

Pair Trading with MCH Group and Fundamenta Real

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

The idea behind MCH Group AG and Fundamenta Real Estate 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.