Correlation Between MaxLinear and Eightco Holdings

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

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

Diversification Opportunities for MaxLinear and Eightco Holdings

0.12

Correlation Coefficient

MaxLinear  Eightco Holdings

Average diversification

The 3 months correlation between MaxLinear and Eightco is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding MaxLinear and Eightco Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eightco Holdings and MaxLinear 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 MaxLinear are associated (or correlated) with Eightco Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eightco Holdings has no effect on the direction of MaxLinear i.e., MaxLinear and Eightco Holdings go up and down completely randomly.

Pair Corralation between MaxLinear and Eightco Holdings

Considering the 90-day investment horizon MaxLinear is expected to under-perform the Eightco Holdings. But the stock apears to be less risky and, when comparing its historical volatility, MaxLinear is 31.74 times less risky than Eightco Holdings. The stock trades about -0.01 of its potential returns per unit of risk. The Eightco Holdings is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  182.00  in Eightco Holdings on July 27, 2025 and sell it today you would earn a total of  460.00  from holding Eightco Holdings or generate 252.75% return on investment over 90 days.

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

MaxLinear  vs.  Eightco Holdings

MaxLinear

Risk-Adjusted Performance

Weakest

Over the last 90 days MaxLinear has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, MaxLinear is not utilizing all of its potentials. The newest stock price mess, may contribute to short-term losses for the institutional investors.

Eightco Holdings

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Eightco Holdings are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain fundamental drivers, Eightco Holdings unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with MaxLinear and Eightco Holdings

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

The idea behind MaxLinear and Eightco Holdings 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.