Correlation Between OFFICIAL TRUMP and Maker

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

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

Diversification Opportunities for OFFICIAL TRUMP and Maker

-0.43

Correlation Coefficient

OFFICIAL TRUMP  Maker

Very good diversification

The 3 months correlation between OFFICIAL and Maker is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding OFFICIAL TRUMP and Maker in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maker and OFFICIAL TRUMP 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 OFFICIAL TRUMP are associated (or correlated) with Maker. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maker has no effect on the direction of OFFICIAL TRUMP i.e., OFFICIAL TRUMP and Maker go up and down completely randomly.

Pair Corralation between OFFICIAL TRUMP and Maker

Assuming the 90 days trading horizon OFFICIAL TRUMP is expected to generate 13.17 times less return on investment than Maker. In addition to that, OFFICIAL TRUMP is 1.15 times more volatile than Maker. It trades about 0.01 of its total potential returns per unit of risk. Maker is currently generating about 0.12 per unit of volatility. If you would invest  151,060  in Maker on April 23, 2025 and sell it today you would earn a total of  57,232  from holding Maker or generate 37.89% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.46%
Values	Daily Returns

OFFICIAL TRUMP  vs.  Maker

OFFICIAL TRUMP

Risk-Adjusted Performance

Very Weak

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

Maker

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Maker are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, Maker exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with OFFICIAL TRUMP and Maker

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

The idea behind OFFICIAL TRUMP and Maker 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 Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..