Correlation Between Altisource Portfolio and MMA Capital

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Can any of the company-specific risk be diversified away by investing in both Altisource Portfolio and MMA Capital 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 Altisource Portfolio and MMA Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Altisource Portfolio Solutions and MMA Capital Holdings, you can compare the effects of market volatilities on Altisource Portfolio and MMA Capital 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 Altisource Portfolio with a short position of MMA Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Altisource Portfolio and MMA Capital.

Diversification Opportunities for Altisource Portfolio and MMA Capital

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  Correlation Coefficient

Pay attention - limited upside

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

Pair Corralation between Altisource Portfolio and MMA Capital

If you would invest (100.00) in MMA Capital Holdings on December 30, 2023 and sell it today you would earn a total of  100.00  from holding MMA Capital Holdings or generate -100.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

Altisource Portfolio Solutions  vs.  MMA Capital Holdings

 Performance 
       Timeline  
Altisource Portfolio 

Risk-Adjusted Performance

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Over the last 90 days Altisource Portfolio Solutions has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of sluggish performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2024. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.
MMA Capital Holdings 

Risk-Adjusted Performance

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

Altisource Portfolio and MMA Capital Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Altisource Portfolio and MMA Capital

The main advantage of trading using opposite Altisource Portfolio and MMA Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Altisource Portfolio position performs unexpectedly, MMA Capital 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 MMA Capital will offset losses from the drop in MMA Capital's long position.
The idea behind Altisource Portfolio Solutions and MMA Capital 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.
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.

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